ACCOUNTING RATIOS - Mesmerizers



ACCOUNTING RATIOS

SHORT TERM FIN. POSITION

1. Current Ratio = Current Asset ( Current Liabilities

2. Stock to Working Capital Ratio = Stock ( Working Capital

3. DRS to working capital Ratio = DRS ( Working Capital

IMM FIN POSITION

4. Quick Ratio Liquid Acid Tests = QUICK ASST.

(Current Assets – Stock – Prepaid Exp.) (

QUICK LIB.

(Current Lib. – CC – Bank O/D – Income

Received in Advance)

5. Super Quick Ratio / Absolute Cash Ratio = Cash + Mkt. Non-Trade Investment ( Quick /

Current Liability

6. Cash To Total Asset = Cash + MNT Investment ( Total Assets

(adjusted for MNT Investment – (ed / (ed)

7. Cash Interval Ratio = Cash + MNT Investment ( Avg. Daily Cash Operating Exp.

LONG TERM FINANCIAL POSITION

8. Debt – Equity Ratio = Debt ( Equity OR Debt ( Debt + Equity

(Debt means long term debt)

9. Proprietary Ratio = Proprietor’s Funds ( Total Assets

(FA + CA)

10. Interest Coverage Ratio = N P B I T + Depn. ( Interest Cost Per Annum

11. Debt Service Coverage Ratio = NPAT + Depn. + Amortisn. + Interest (

Annual install. + Interest

SHORT TERM FINANCE MANAGEMENT

12. Stock Turnover Ratio = Cost of Goods sold ( Average Stock (FG)

(Finished Goods)

Raw Matrial Inv. Turn Ratio = Raw- Mat Consumed ( Avg. Stock of RM

WIP Turnover Ratio = Cost of Goods Prod / MFRTD ( Avg. Stock of WP

13. Debtors Turnover Ratio = Total Net CR. Sales ( Avg. Receivables

(Drs + BIR)

Avg. Collection Period = 365 x 1 ( DTR

= Avg. Rec. ( Total Net Cr. Sales x 365 OR 12m OR

14. Creditor Turnover Ratio = Total Net Cr. Purchases ( Avg. Payables (Crs. +

BIP)

15. Working Capital Turnover Ratio = Sales ( Working Capital

LONGTERM FINANCIAL MANAGMENT

16. Fixed Assets Turnover Ratio = Sales ( Fixed Assets (at WDV)

17. Capital Turnover Ratio = Sales ( Capital Employed

Cap. Emp. = Equity + Debt – Mis. Exp losses – Non Trade Invest.

18. Capital Gearing Ratio = Funds Bearing (fixed) int. / div. (

Funds not bearing (fixed) int. / div.

PROFITABILITY RATIOS

A) AS COMPARED TO SALES

19. Gross Profit Ratio = GP ( Sales x 100

20. Net Profit Ratio = NPBIT ( Sales x 100 OR

Operating Profit ( Sales x 100 OR

NPAT ( Sales x 100

52 Weeks

21. Expenses Ratio

COGS Ratio - COGS ( Sales x 100

AEXP Ratio - AEXP ( Sales x 100

S/D Exp. Ratio - S. Dexp ( Sales x 100

FEXP - FE ( Sales x 100

Opearting Ratio - (COGS + Operating Exp) ( Sales x 100

B) As Compared to Funds Employed

22. Return on Capital Employed / Return on Investments = Net Profit Before Interest & Tax

(before Non-Trade Investments before

non-operating adjustments) ( Avg.

Capital Employed x 100

23. Return on Proprietors Funds = NPAT ( Prop Funds x 100

24. Return on Eq. Sh. Funds = NPAT – Preferential Sh Div ( Eq. Sh. Funds x 100

25. Return on Eq. Capital = NPAT – Preferential Sh Div ( Eq. Sh. Cap. X 100

26. Earnings (Per Share) = NPAT - Preferential Sh Div ( No. of Eq. Shares

27. Dividend (Per Share) = Total Dividend (eq) ( No. of Eq. Shares

28. Dividend Ratio = DPS ( EPS x 100

29. Dividend Ratio = DPS ( Mkt. Price (Per Share) x 100

30. Earnings Ratio = EPS ( Mkt. Price x 100

31. Price Earnings Ratio (P/E) = Mkt. Price per share ( EPS

32. = NPAT ( Preferential Sh Div

33. = NPAT – Preferential Sh Div ( Equity Div.

MISCELLANEOUS RATIO (FROM MODULE)

34. Gross Margin / Sales = NPB (depn. & tax) After Interest ( Sales

35. Cash Flow per Share = NPAT + Non cash charges (depn). ( No. of equity shares

36. Market Value to Book Value = Avg. Mkt. Price per share ( Book value per share

37. Market value to cash flow = Avg. mkt. Price per share ( cash flow per share

Ratio

1. Cash

2. Asset (WDV)

3. Sales (Realn.) + (P.V. of unread sales)

4. EVA – OVA

5. I/O Ratios (variable)

6. Risks

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