4/5/2018 Ratio Analysis - Ratios Formulae.

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Ratio Analysis – Ratios Formulae

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We have discussed various ratios and their importance. Starting with introduction to ratio Interested in this topic?
analysis and classi cation of ratios, we have explained the importance of using various ratios Our counsellors will get in touch with you
with more information about this topic.
and the formulae of how they are calculated. This blog post gives you the formulae for the
ratios that we have discussed in this series. * Mandatory Field

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Liquidity Ratios
S. No. 1

RATIOS Current Ratio

FORMULAS Current Assets/Current Liabilities

S. No. 2

RATIOS Quick Ratio

FORMULAS Liquid Assets/Current Liabilities

S. No. 3

RATIOS Absolute Liquid Ratio

FORMULAS Absolute Liquid Assets/Current Liabilities

Pro tability Ratios

S. No. 1

RATIOS Gross Profit Ratio

FORMULAS Gross Profit/Net Sales X 100

S. No. 2

RATIOS Operating Cost Ratio

FORMULAS Operating Cost/Net Sales X 100

S. No. 3

RATIOS Operating Profit ratio

FORMULAS Operating Profit/Net Sales X 100

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4/5/2018 Ratio Analysis - Ratios Formulae. All Formulae in once place

S. No. 4

RATIOS Net Profit Ratio

FORMULAS Operating Profit/Net Sales X 100

S. No. 5

RATIOS Return on Investment Ratio

FORMULAS Net Profit After Interest And Taxes/

Shareholders Funds or Investments X 100

S. No. 6

RATIOS Return on Capital Employed Ratio

FORMULAS Net Profit after Taxes/ Gross Capital Employed

X 100

S. No. 7

RATIOS Earnings Per Share Ratio

FORMULAS Net Profit After Tax & Preference Dividend /No

of Equity Shares

S. No. 8

RATIOS Dividend Pay Out Ratio

FORMULAS Dividend Per Equity Share/Earning Per Equity

Share X 100

S. No. 9

RATIOS Earning Per Equity Share

FORMULAS Net Profit after Tax & Preference Dividend /

No. of Equity Share

S. No. 10

RATIOS Dividend Yield Ratio

FORMULAS Dividend Per Share/ Market Value Per Share X

100

S. No. 11

RATIOS Price Earnings Ratio

FORMULAS Market Price Per Share Equity Share/ Earning

Per Share X 100

S. No. 12

RATIOS Net Profit to Net Worth Ratio

FORMULAS Net Profit after Taxes / Shareholders Net

Worth X 100

Working Capital Ratios

S. No. 1

RATIOS Inventory Ratio

FORMULAS Net Sales / Inventory

S. No. 2

RATIOS Debtors Turnover Ratio

FORMULAS Total Sales / Account Receivables

S. No. 3

RATIOS Debt Collection Ratio

FORMULAS Receivables x Months or days in a year / Net

Credit Sales for the year

S. No. 4

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4/5/2018 Ratio Analysis - Ratios Formulae. All Formulae in once place

RATIOS Creditors Turnover Ratio

FORMULAS Net Credit Purchases / Average Accounts

Payable

S. No. 5

RATIOS Average Payment Period

FORMULAS Average Trade Creditors / Net Credit

Purchases X 100

S. No. 6

RATIOS Working Capital Turnover Ratio

FORMULAS Net Sales / Working Capital

S. No. 7

RATIOS Fixed Assets Turnover Ratio

FORMULAS Cost of goods Sold / Total Fixed Assets

S. No. 8

RATIOS Capital Turnover Ratio

FORMULAS Cost of Sales / Capital Employed

Capital Structure Ratios

S. No. 1

RATIOS Debt Equity Ratio

FORMULAS Total Long Term Debts / Shareholders Fund

S. No. 2

RATIOS Proprietary Ratio

FORMULAS Shareholders Fund/ Total Assets

S. No. 3

RATIOS Capital Gearing ratio

FORMULAS Equity Share Capital / Fixed Interest Bearing

Funds

S. No. 4

RATIOS Debt Service Ratio

FORMULAS Net profit Before Interest & Taxes / Fixed

Interest Charges

Overall Pro tability Ratio

S. No. 1

RATIOS Overall Profit Ability Ratio

FORMULAS Net Profit / Total Assets

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