Documentos de Académico
Documentos de Profesional
Documentos de Cultura
Long Term
Short Term Long Term Short Term 1) Debt-Equity Ratio
General Profitability Overall Profitability 2) Proprietary Ratio
Ration 3) Fixed assets Ratio
4) Long-term debt to
1) G.P Ratio 1) Return on Share 1) Current Ratio shareholder Fund
2) N.P Ratio holder investment 2) Quick/Liquid/Acid 5) Fixed asset network ratio
3) Operating Profit Ratio 2) Return on Share Test Ratio 6) Debt service Ratio
4) Operating /Cost Ratio holder Equity 3) Absolute liquid ratio 7) Capital gearing Ratio
5) Particular Expense Ratio 3) E.P.S
(Earning per share)
4) Return on Gross 1) Stock turnover Ratio
Capital employed 2) Debtors turnover Ratio
5) Return on Net 3) Creditors turnover
Capital employed 4) Average age of Inventory
6) Dividend yield Ratio 5) Average age of Debtors
7) Dividend payout Ratio 6) Average age of Creditors
8) Price earning ratio 7) Working Capital turnover
Ratio
Formulas:
Profitability Ratio
Short Term
1) Gross Profit Ratio = G.P/Sales x100=% → % of G.P to Sales ↑ is better
2) Net Profit Ratio = N.P/Sales x100=% → % of N.P to Sales ↑ is better
3) Operating Profit Ratio = Operating Profit/Sales x100=% ratio of operating profit to sales ↑ is better
Operating profit= Sales -C.G.S –operating Exp
Operating profit= Sales –Operating Cost
Operating Cost= C.G.S +operating Exp.
Operating profit= G.P –Operating Exp.
Operating profit= N.P +Other income –other expenses
4) Operating Ratio = Operating Cost/Sales x100= % → % of operating cost to sales ↓ is better
5) Particular Expense ratio =Particular Exp/Sales x100 =% ratio of any expense to sales ↓ is better