Liquidity Ratios.docx

Liquidity Ratios 1 Current Ratio 2 Quick Ratio 3 Absolute Liquid Ratio Profitability Ratios 1 Gross Profit Ratio 2 Operating Cost Ratio 3 Operating Profit ratio 4 Net Profit Ratio 5 Return on Investment Ratio 6

Return on Capital Employed Ratio

7 Earnings Per Share Ratio 8 Dividend Pay Out Ratio 9 Earning Per Equity Share 10 Dividend Yield Ratio 11 Price Earnings Ratio 12 Net Profit to Net Worth Ratio Working Capital Ratios 1 Inventory Ratio 2 Debtors Turnover Ratio 3 Debt Collection Ratio 4 Creditors Turnover Ratio 5 Average Payment Period Working Capital Turnover Ratio 7 Fixed Assets Turnover Ratio 8 Capital Turnover Ratio Capital Structure Ratios 1 Debt Equity Ratio 2 Proprietary Ratio 3 Capital Gearing ratio 6

4 Debt Service Ratio Overall Profitability Ratio 1 Overall Profit Ability Ratio

Current Assets/Current Liabilities Liquid Assets/Current Liabilities Absolute Liquid Assets/Current Liabilities Gross Profit/Net Sales X 100 Operating Cost/Net Sales X 100 Operating Profit/Net Sales X 100 Operating Profit/Net Sales X 100 Net Profit After Interest And Taxes/ Shareholders Funds or Investments X 100 Net Profit after Taxes/ Gross Capital Employed X 100 Net Profit After Tax & Preference Dividend /No of Equity Shares Dividend Per Equity Share/Earning Per Equity Share X 100 Net Profit after Tax & Preference Dividend / No. of Equity Share Dividend Per Share/ Market Value Per Share X 100 Market Price Per Share Equity Share/ Earning Per Share X 100 Net Profit after Taxes / Shareholders Net Worth X 100 Net Sales / Inventory Total Sales / Account Receivables Receivables x Months or days in a year / Net Credit Sales for the year Net Credit Purchases / Average Accounts Payable Average Trade Creditors / Net Credit Purchases X 100 Net Sales / Working Capital Cost of goods Sold / Total Fixed Assets Cost of Sales / Capital Employed Total Long Term Debts / Shareholders Fund Shareholders Fund/ Total Assets Equity Share Capital / Fixed Interest Bearing Funds Net profit Before Interest & Taxes / Fixed Interest Charges Net Profit / Total Assets