Professional Documents
Culture Documents
As
Balance
Sheet Ratio
Financial Ratio
Current Ratio
Quick Asset
Ratio
Proprietary
Ratio
Debt Equity
Ratio
P&L Ratio or
Balance Sheet
Income/Revenu and Profit &
e Statement
Loss Ratio
Ratio
Operating Ratio
Composite Ratio
Fixed Asset
Turnover Ratio,
Return on Total
Resources Ratio,
Return on Own
Funds Ratio,
Earning per Share
Ratio, Debtors
Turnover Ratio,
1.
2.
Example :
Cash
50,000
Debtors
1,00,000
Inventories
1,50,000
1,00,000
Total Current Assets 3,00,000
Current Ratio
=>
Current Liabilities
3,00,000/1,00,000
800/500
i.e. 1.6 : 1
=>
=>
9.
Net
Net
Composite Ratio
17. RETRUN ON EQUITY CAPITAL (ROE) :
Net Profit after Taxes / Tangible Net
Worth
18.EARNING PER SHARE
: EPS indicates the
quantum of net profit of the year that would be
ranking for dividend for each share of the company
being held by the equity share holders.
Net profit after Taxes and Preference
Dividend/ No. of Equity Shares
19. PRICE EARNING RATIO : PE Ratio indicates the
number of times the Earning Per Share is covered
by its market price.
EXERCISE 1
LIABILITES
Capital
Reserves
ASSETS
180 Net Fixed Assets
20 Inventories
Term Loan
300 Cash
Bank C/C
200 Receivables
Trade Creditors
50 Goodwill
Provisions
50
800
400
150
50
150
50
800
a.
b.
c.
d.
e.
f.
EXERCISE 2
LIABILITIES
200506
200607
200506
Capital
300
Reserves
140
160 Security
320
Bank CC (Hyp)
200607
730
750
30
30
280 Investments
110
110
490
150
170
Unsec. Long T L
150
170 S I P
20
30
Creditors (RM)
120
140
170
30
20
310
240
Electricity
70 Finished
Goods
Bills Payable
40
80 Cash
Expenses
Payable
20
30 Receivables
Provisions
40+ Loans/Advanc
30
190
1.
Tangible Net Worth for 1st20
Year : ( 300
140) - 50 = 390
es
2. Current Ratio for 2nd Year : (170 + 30 +170+20+
240 + 190 ) / (580+70+80+70)
Goodwill
50
50
820 /800 = 1.02
Total
1600
1760
1600
1760
3. Debt Equity Ratio for 1st Year : 320+150 / 390 = 1.21
Exercise 3.
LIABIITIES
ASSETS
Equity Capital
800
Preference Capital
100 Inventory
300
Term Loan
600 Receivables
150
Bank CC (Hyp)
Sundry Creditors
Total
1400
50
100
1400
= 2:1