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Comprehensive Guide to Financial Ratios

The document discusses various financial ratios used to analyze a company's liquidity, leverage, efficiency and profitability including current ratio, acid-test ratio, cash ratio, operating cash flow ratio, debt ratio, debt-to-equity ratio, asset turnover ratio, inventory turnover ratio, gross margin ratio, operating margin ratio, return on assets ratio and return on equity ratio.

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pankaj baviskar
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10 views2 pages

Comprehensive Guide to Financial Ratios

The document discusses various financial ratios used to analyze a company's liquidity, leverage, efficiency and profitability including current ratio, acid-test ratio, cash ratio, operating cash flow ratio, debt ratio, debt-to-equity ratio, asset turnover ratio, inventory turnover ratio, gross margin ratio, operating margin ratio, return on assets ratio and return on equity ratio.

Uploaded by

pankaj baviskar
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd

Liquidity Ratios

Current Ratio=

Acid-test ratio

Cash ratio

Operating cash flow ratio


Leverage Financial Ratios
Debt ratio
Debt to equity ratio
Debt-to-Capital Ratio
Debt-to-EBITDA Ratio
Asset-to-Equity Ratio
Efficiency Ratio
Asset turnover ratio

Inventory turnover ratio


Days sales in inventory ratio
Profitability Ratios
Gross margin ratio
Operating margin ratio
Return on assets ratio
Return on equity ratio
Rates of return and profitability analysis
Return on equity ratio (ROE)
Return on Capital Employed(ROCE)
CA/CL

(Current assets – Inventories) / Current liabilities

Cash and Cash equivalents / Current Liabilities

Operating cash flow / Current liabilities

Total liabilities / Total assets


Total liabilities / Shareholders equity
Total Debt(Borrowings) / Total Capital(Equity Capital+Borrowings+Reserves)
Total Debt / Earnings Before Interest Taxes Depreciation & Amortization (EBITDA)
Total Assets / Total Equity

Net sales / Average total assets


Average Total assets= (Total assests of prev. year+total assets of current year)/ 2
COGS/ Average Inventory
365 days / Inventory turnover ratio

Gross profit / Net sales


Operating income / Net sales
Net income / Total assets
Net income / Shareholders equity
ofitability analysis
Net Profit/(Reserves+Share Capital)
(Operating Profit - Depreciation) (1-Tax)/ Total Capital(equity capital+reserves+borrowings)

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