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    Financial Management Ratio Analysis

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    Amrita Gharti
    This document outlines 29 different financial ratios used for ratio analysis in financial management. These ratios can be used to analyze various aspects of a company's financial performance and health, including profitability, liquidity, leverage, asset utilization, and debt coverage. Some key ratios include gross profit ratio, net profit ratio, return on capital employed, current ratio, debt-equity ratio, and debt-to-net worth ratio.

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    Financial Management Ratio Analysis

    Uploaded by

    Amrita Gharti
    14 views1 page
    This document outlines 29 different financial ratios used for ratio analysis in financial management. These ratios can be used to analyze various aspects of a company's financial performance and health, including profitability, liquidity, leverage, asset utilization, and debt coverage. Some key ratios include gross profit ratio, net profit ratio, return on capital employed, current ratio, debt-equity ratio, and debt-to-net worth ratio.

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    This document outlines 29 different financial ratios used for ratio analysis in financial management. These ratios can be used to analyze various aspects of a company's financial performance and health, including profitability, liquidity, leverage, asset utilization, and debt coverage. Some key ratios include gross profit ratio, net profit ratio, return on capital employed, current ratio, debt-equity ratio, and debt-to-net worth ratio.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views1 page

    Financial Management Ratio Analysis

    Uploaded by

    Amrita Gharti
    This document outlines 29 different financial ratios used for ratio analysis in financial management. These ratios can be used to analyze various aspects of a company's financial performance and health, including profitability, liquidity, leverage, asset utilization, and debt coverage. Some key ratios include gross profit ratio, net profit ratio, return on capital employed, current ratio, debt-equity ratio, and debt-to-net worth ratio.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    FINANCIAL MANAGEMENT

    RATIO ANALYSIS

    1. Gross profit ratio = (Gross profit / Net sales) x 100


    2. Net profit ratio = (Net profit / Net sales) x l00
    3. Operating profit ratio = (Operating profit / Net sales) x 100
    4. Expense ratios = (Individual expenses / Net sates) x 100
    5. Operating (cost) ratio = (Operating cost / Net sales) x 100
    6. Net profit to net worth ratio = (Net profit after interest and tax / Net worth) x 100
    7. Return on capital employed (ROI) = (Net profit before interest, tax / Capital employed) x 100
    8. Earning per share = net profit available for equity shareholders / Number of equity shares
    9. Dividends per share = Dividend amount / Number of equity shares
    10. Capital employed turnover ratio = Cost of sales / Capital employed
    11. Fixed assets turnover ratio = Cost of sales or sales / Fixed assets
    12. Working capital turnover ratio = Cost of sales or Net sales / Net working capital
    13. Inventory turnover ratio = Cost of goods sold / Average inventory
    14. Debtors (receivables) turnover ratio = Annual net credit sales / Average accounts receivable
    15. Debtors (receivables) collection period = Accounts receivables / Net credit sales per day
    16. Creditors turnover ratio = Net credit purchases / Average creditors
    17. Average credit period = Average account payables / Net credit purchases per day
    18. Current ratio = Current assets / Current liabilities
    19. Quick ratio/Acid test ratio = Quick assets / Current liabilities
    20. Debt Equity Ratio = Total long term debts / shareholder' funds
    21. Debt to net worth = Total long term debt / Shareholder's funds
    22. External-internal equity = External equity / Internal equity
    23. Debt vs. funds = total long term debts / Total long term funds
    24. Debt service ratio = Earnings before interest and taxes / Fixed interest charges
    25. Fixed assets ratio =Net fixed assets / Long-term funds
    26. Solvency (debt to total funds) ratio = Total liabilities / Total assets
    27. Reserves to capital ratio = Reserves / Capital
    28. Capital gearing ratio =Equity / Fixed interest hearing securities
    29. Proprietary ratio = Proprietor's funds / Total assets

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