Ratio Analysis

Ratio Analysis
FINANCIAL STATEMENT ANALYSIS (FSA)
1 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

TOOLS FOR FINANCIAL STATEMENT ANALYSIS
Beneish's M-
score
The
Detection of
Earnings
Manipulatio
n
Altman’s Z-
score Cash Flow
Probability of Statement
Bankruptcy
TOOLS
FOR
FINANCIAL
ANALYSIS
Du-pont
Analysis
Margin Ratio Analysis
Turnover
Leverage
Common Size
Statement
Analysis
Ratio Analysis
 What is Ratio Analysis
 Ratio Analysis and Financial statement
 Window Dressing
 Uses of ratio analysis
 Classification of Ratios
 (A) According to Financial Statements
 (B) According to Purpose or Functional
Classification

Ratio Analysis and Financial
statement
 Ratio analysis is an important and useful tool
to check upon the efficiency with which
working capital is being used in the
The use of ratio analysis is not
enterprise.
confined to the financial manager
only.It functions as a sort of
The credit supplier, bank, HEALTH TEST. With the
lending institutions and help of ratio analysis
experienced investor all financial executive can
use ratio analysis as their measure whether the
initial tool in evaluating the company is at present
company as a desirable financially healthy or not.
borrower or as potential The following are the
investment outlet. important material uses of
ratio analysis.
 Ratio analysis is the process of determining
and interpreting numerical relationships based
on financial statements.
A ratio is a statistical yard
stick that provides a measure
of the relationship between
variables or figures.
This relationship can be expressed
as percent (cost of goods sold as a
percent of sales) or as a quotient
(current assets as a certain number
of times the current liabilities).
 THE PARTIES INTERESTED : The persons
interested in the analysis of financial
statements can be grouped under three
heads:
(i) Owners or

investors;
(ii) Creditors; and
(iii) Financial
executives.

Uses of ratio analysis
Aid in
Aid in
Financial
COMPARISON
FORECASTING
Aid in COST COMMUNICATI

CONTROL ON value

Window Dressing
 The term window dressing means
manipulation of accounts in a way so as to
conceal vital facts and present the financial
statements in a way to show a better
On account
position thanofwhat
such it
a actually
situation, is.
presence of a
particular ratio may not be a definite indicator of
good or bad management.
For example, a high stock turnover ratio is
generally considered to be an indication of
operational efficiency of the business. But this
might have been achieved by unwarranted price
reductions or failure to maintain proper stock of
goods.

Advantages of Ratio Analysis
• To measure the liquidity position
Liquid
ity
and
• To know the solvency position
solve
ncy
• Operating efficiency or turnover of
Opera
ting
the firm
efficie
ncy
• To assess the profitability position of
and
profit the firm
ability
• Inter - firm and intra – firm

Comp
arison comparison
and
Trend • Trend Analysis
analy
sis

Classification of Ratios
 (A) According to Financial Statements:
 Balance Sheet Ratios: These ratios are calculated
to know the financial position of a company on a
particular date. Both items for which ratio is to be
calculated appear on the balance sheet. Such a ratio
may be called a financial ratio.
 Example of balance sheet ratios are: -
 current ratio,
 quick ratio,
 liquidity ratio,
 ratio of inventory to working capital,
 ratio of current assets to fixed assets,
 debt to equity ratio,
 proprietary ratio and
 capital gearing ratio.

(A) According to Financial Statements:
 Profit and Loss Ratios: Ratios which are
drawn from trading and profit and loss
account are known as profit and loss ratios.
These ratios deal with the relationship
between two items both of which belong to
the profit and loss account. Such a ratio may
be called an operating ratio.
 Examples of these ratios are:-
 Gross profit ratio,
 Operating ratio,
 Operating profit ratio and
 Net profit ratio.

(A) According to Financial Statements:
 Combined Ratios: These ratios shows the
relationship between items, one of which is a part
of the balance sheet and the other of the profit
and loss account. Such a ratio may be called a
mixed ratio.
 Examples of these ratios are:-
 Stock turnover ratio,
 Receivable turnover ratio,
 Working capital turnover ratio,
 Fixed assets turnover ratio,
 Capital turnover ratio,
 Total assets turnover ratio,
 Return on shareholders Investment and
 Return on capital employed.
(B) According to
Purpose or Functional
Classification: RATIOS
Profitabilit Activity Solvency

y Ratios Ratios Ratio s
Short Term
A) In Relation to Sales: Long Term
1. Inventory Solvency
1. Gross profit Ratio Solvency
Turnover Ratio Ratio
2. Operating Ratio Ratio s
3. Operating Profit Ratio 2. Debtors
4. Net Profit Ratio Turnover Ratio 1. Debt
1. Current
5. Expense Ratio 3. Creditors Equity
Ratio
B) In Relation to Turnover Ratio Ratio
2. Liquidit
Investment : 4. Fixed Assets 2. Propriet
y Ratio
6. Return on ary
Turnover Ratio 3. Interest
Investment Ratio
7. Return on Equity
5. Working Capital Covera
Turnover Ratio 3. Fixed
Shareholders Fund ge
6. Capital Turnover Assets
8. Return on Total Ratio
Resources Ratio Ratio
4. Capital
13 Imlak Shaikh,Ph.D, MDI Gurgoan Gearing 29/10/2024
Financial/Solvency Ratios:

They are also termed as ‘Solvency Ratios’.
These ratios indicate about the financial position
of the company.
A company is considered to be financially sound if
it is in a position to carry on its business smoothly
and meet all its obligations both short-term and
The Financial
long-term withoutor Solvency Ratios can
strain.
therefore be classified into following
categories:
(i) Short-term Solvency
Ratios, which include (ii) Long-term Solvency
current ratio, liquidity Ratios, which include
ratio, super-quick ratio fixed assets ratio, debt
and defensive interval equity ratio and
ratio & debt service proprietary ratio
15
coverage ratio. Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024
Short-term Solvency Ratios

1. Current Ratio
 The ratio is an indicator of the firm’s commitment to

meet its short-term liabilities. It is expressed as follows:
Current Assets
Current Ratio 
Current Liabilitie s
An ideal current ratio is ‘2’. However, a ratio of 1.5 is also
acceptable if the firm has adequate arrangements with its bankers
to meet its short-term requirements of funds.
Significance: The ratio is an index of the concern’s

financial stability, since, it shows the extent to which the
current assets exceed its current liabilities. A higher
current ratio would indicate inadequate employment of
funds, while a poor current ratio is a danger signal to the
management.
2. Liquidity Ratio:
 The ratio is also termed as Acid Test Ratio or Quick Ratio. The ratio is ascertained
by comparing the liquid assets i.e., current assets (excluding stock and prepaid
expenses) to current liabilities. The ratio may be expressed as follows:
Liquid Assets
Liquidity Ratio 
Some accountants prefer the term liquid liabilities for current liabilities.
The term ‘liquid liabilities’ means liabilities payable within a short
period. Bank overdraft and cash credit facilities (if they become
permanent modes of financing) are excluded from current liabilities for
this purpose. The ratio may be expressed as follows:
Liquid Assets
Liquidity Ratio  The ideal ratio is
Liquid Liabilitie s ‘1’.
Significance: The ratio is an indicator of short-term solvency of the

company. A comparison of the current ratio to quick ratio should also
indicate the inventory hold-ups. For instance, if two units have the same
current ratio but different liquidity ratios, it indicates over-stocking by the
concern
18
having low liquidity Imlak
ratioShaikh,Ph.D,
as compared to the firm which has a higher
MDI Gurgoan 29/10/2024
liquidity ratio.
3. Super-quick Ratio:
 It is a slight variation of quick ratio. It is calculated by comparing the super
quick assets with the current liabilities (or liquid liabilities) of a firm. The
ratio may be expressed as follows:
Super Quick Assets

Super - quick Ratio 
The term ‘Super-Quick Assets’ means current assets excluding
stock, prepaid expenses and debtors Thus, super-quick
assets comprise mainly CASH, BANK BALANCE and
MARKETABLE SECURITIES.
Significance: This ratio is the most rigorous test of a firm’s
liquidity position. In case the ratio is ‘1’, it means the firm
can meet its current liabilities any time.
The ratio is a conservation test and not widely used in
practice.
4. Defensive-Interval Ratio (DIR)
 This ratio denotes the liquidity of a firm in relation to its ability to meet
projected daily expenditure from operations. It can be expressed as
follows:
Liquid Assets (quick assets)

Defensive Interval Ratio 
Daily cash requiremen ts (projected )
Daily cash requirements (projected) = Projected cash operating

expenditure/Number of days in a year.
Significance: The DIR is thought by many people to be a

better liquidity measure than the quick and current ratios.
Because these ratios compare assets to liabilities rather
than comparing assets to expenses, the DIR and
current/quick ratios would give quite different results if the
company hand a lot of expenses, but no debt.
5. Debt Service Coverage Ratio
(DSCR)
 This ratio indicates whether the business is earning sufficient profits to pay not
only the interest charged, but also whether due of the principal amount. The
ratio is calculated as follows:
Profit after Taxes + Depreciati on + Interest on Loan

Debt Service Coverage Ratio 
Interest on Loan + Loan repayment in a year
Significance: The ratio is the key indicator to the

lender to assess the extent of ability of the borrower to
service the loan in regard to timely payment of interest
and repayment of loan installment. A ratio of 2 is
considered satisfactory by the financial institutions
the greater debt service coverage ratio indicates the
better debt servicing capacity of the organization.
Long-term Solvency Ratios

1. Fixed Assets Ratio:
 The ratio indicates the extent to which fixed assets have been acquired by use
of long-term funds. The ratio is expressed as follows:
Net Fixed Assets

Fixed Assets Ratio 
Long - term Funds
The term ‘Net Fixed Assets’ means original cost of fixed assets
less depreciation to date. The ratio should not be more than ‘1’ .
The ideal ratio is 0.67.
Significance: It is sound principle that fixed assets should be
financed out of long-term funds. As a matter of fact a part of
working capital termed as core-working capital, should also be
financed by long-term funds. The ratio is therefore an
indication of the fact whether the company has followed sound
financial policy or not. In case the ratio is more than ‘1’, it
shows that a part of working capital has also been used
to acquire fixed assets, which may prove quite
troublesome for the company.
2. Debt-Equity Ratio:
 The ratio is determined to ascertain the proportion between the ‘outsiders’ ‘funds and
share-holders funds’ in the capital structure of an enterprise. The term outsiders’, funds
is generally used to represent total long-term debt. The ratio can be computed as
follows:
Total Long - term Debt
Debt - Equity Ratio 
Shareholde r’s Funds
The ratio may also be calculated for ascertaining proportion of
long-term debt in the total long-term funds. In such a case the ratio
will be computed as follows:
Total Long - term Debt
Debt - Equity Ratio 
Total Long - term Funds
The ratio is considered to be ideal if the shareholders’ funds
are equal to total long-term debt. However, these days the ratio is
also acceptable if the total long-term debt does not exceed twice of
shareholders’
Significance:funds.
The ratio is an indication of the soundness of the long-
term financial policies pursued by the business enterprise. The
excessive dependence on outsiders’ funds may cause
insolvency of the business. The ratio provides the margin of
safety to the creditors It tells the owners the extent to which they
can gain by maintainingImlak
24 control with a MDI
Shaikh,Ph.D, limited investment.
Gurgoan 29/10/2024
Profitability Ratios

1. Overall Profitability Ratio
 This is also called as Return on Investment (ROI) or Return
on Capital Employed (ROCE) ratio. It indicates the
percentage of return on the total capital employed in the
business. It is calculated as follows:
 ROI = Operating Profit/Capital Employed
 The term ‘Operating Profit’ means “profit before interest and
tax while the term ‘capital employed’ refer to the sum-total
of long-term funds employed in the business.
 Significance: ROI measures the profit which a firm earns
by investing a unit of capital. It is desirable to ascertain this
periodically. The profit being the net result of all operations,
ROI, expresses all efficiencies or inefficiencies of a
business collectively. Thus, it is a dependable measure for
judging the overall efficiency or inefficiency of the business.

2. Price Earning Ratio (P/E Ratio)
 This ratio indicates the number of times the

earning per share is covered by its market
price. It is calculated as follows:
Market Price Per Equity Share

P / E Ratio 
Earning Per Share

 For example, if the market price of an equity
share is Rs. 20 and earning per share is Rs. 5,
the price earning ratio will be 4 (i.e., 20 ÷ 5).
 This means for every one rupee of earning people
are prepared to pay 4. In other words, the ROR-rate
of return expected by the investors is 25%
 Significance. P/E Ratio helps the investors in deciding
whether to buy or not to buy the shares of a company at
a particular price. For Instance, in the example given, if
the EPS falls to Rs. 3, the market price of the share
should be Rs. 12 (i.e. 3 x 4).
 In case the market price of the share is Rs.15, it will not
be advisable to purchase the company’s shares at that
price.
3. Proprietary Ratio
 It is a variant of Debt-Equity Ratio. It establishes relationship between the
proprietors’ or shareholders’ funds and the total tangible assets. It may be
expressed as follows:
Shareholder’s Funds
Proprietar y Ratio 
Total Tangible Assets
Significance: The ratio focuses attention on the general
financial strength of the business enterprise. The ratio is
of particular importance to the creditors who can find
out the proportion of shareholders funds in the total
assets employed in the business. A high proprietary
ratio will indicate a relatively little danger to the creditors
29
or vise-versa in theImlak
event of forced reorganization or
Shaikh,Ph.D, MDI Gurgoan 29/10/2024
winding up of the company.
3. Gross Profit Ratio (GPR):
 This ratio expresses the relationship between

Gross Profit and Net Sales. It can be computed
as follows:
Gross Profit
Gross Profit Ratio (GPR)  X 100
Net Sales (i.e. Sales less returns)
Significance. The ratio indicates the overall limit within

which a business must manage its operating expenses. It
also helps in ascertaining whether the average
percentage of mark-up on the goods is maintained.

4. Net Profit Ratio(NPR):
 The ratio indicates net margin earned on a sale of Rs. 100. It is
calculated as follows:
Net Pr ofit
NPR  X 100
Net Sales
Significance. The ratio helps in determining the
efficiency with which the affairs of a business are
being managed. Constant increase in the above ratio
year after year is a definite indication of improving
conditions of the business.

5. Operating Ratio:
 This ratio is a complementary of net profit ratio. In case the net profit
ratio is 20%, the operating ratio will be 80%. It is calculated as follows:
Operating Cost
Operating Ratio  X 100
Net Sales
Operating cost includes cost of indirect materials,

indirect labour, indirect expenses and all
overheads. Financial charges: such as interest,
provision for taxation, etc. are not to be included
in operating cost.
Significance. The ratio is the test of the operational

efficiency with which the business has carried on. The
operating ratio should be low enough to leave a portion
of sales for giving a fair return to the investor
6. Fixed Charges Cover Ratio
(FCCR):
 The ratio indicates the number of times the fixed financial charges are covered by
income before interest and tax. This ratio is calculated as follows:
Income before Interest and Tax

FCCR 
Interest
Significance: The ratio is significant from the

lender’s point of view. It indicates whether the
business would earn sufficient profits to pay
periodically the interest charges.
Higher the ratio, better it is.

7. Pay-out Ratio:
 The ratio indicates what proportion of earning per share has been used for
paying dividend. It can be calculated as follows:
Dividend per equity share

Pay - Out Ratio 
Earning per equity share
Significance: The ratio is an indicator of the amount of
earnings that have ploughed back in the business.
The lower the pay-out ratio, the higher will be the
amount of earnings ploughed back in the business.
.
A lower pay-out ratio means a
STRONGER FINANCIAL POSITION
of the company

8. Dividend Yield Ratio (DYR):
 The ratio is calculated by comparing the rate of dividend per share
with its market value. It is calculated as follows:
Dividend Per Share

DYR  X 100
Market Price Per Share
Significance: The ratio helps an intending investor in
knowing the effective return he is going to get on his
investment.
For example, if the market price of a share is Rs. 25, paid-
up value is Rs. 10 and dividend rate is 20%. The dividend
yield ratio is 8% (i.e. 100 x (20%*10)/25).
The intending investor can now decide whether it
will be advisable for him to go for purchasing the shares of
the company or not at the price prevailing in the market.
9. Return on Shareholders funds or
Return or Net Worth:
 This ratio expresses the net profit in terms of the equity shareholders funds.
This ratio calculated as follows:
Net Profit after Interest & Tax

Ret. on Shar(s) Funds  X 100
Net Worth
[Net Worth = Equity Capital + Reserves &
Surplus]
Significance: This ratio is an important yardstick of
performance for equity shareholders since it indicates the
return or the funds employed by them.

Turnover Ratios / Activity Ratio
These ratios indicate the efficiency with
which capital employed is rotated in the
business.

1. Over-all Turnover Ratio:
 The ratio indicates the number of times the capital employed has been
rotated in the process of doing a business. The ratio is computed as follows:
Net Sales
Overall Turnover Ratio 
Capital Employed
Significance. The overall profitability of a business depends
on two factors, viz, (a) the profit margin, and (b)turnover. The
profit margin is disclosed by the net profit ratio while the
turnover is indicated by the overall turnover ratio. A business
with a lower profit margin can achieve a higher ROI if its
turnover is high. This is the reason for wholesalers earning a
larger return on their investment even when they have a lower
profit margin. A business should not, therefore, increase its
profit
38 margin to an extent that it results
Imlak Shaikh,Ph.D, in reduced
MDI Gurgoan turn-over
29/10/2024
2. Fixed Assets Turnover Ratio:
 The ratio indicates the extent to which the investment in fixed assets
has contributed towards sales. The ratio can be calculated as follows:
Net Sales
Fixed Assets Turnover Ratio 
Net fixed Assets
Significance. The comparison of fixed assets turnover

ratio over a period of time indicates whether the
investment in fixed assets has been judicious or not. Of
course, investment in fixed assets does not push-up sales
immediately but the trend of increasing sales should be
visible. If such trend is not visible or increase in sales has
not been achieved after the expiry of a reasonable time it
can be very well said that increased investments in fixed
39 assets has not beenImlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024
judicious.
3. Debtors’ Turnover Ratio:
 The ratio indicates the speed with which money is collected from the debtors`
It is computed as follows:
Credit Sales
Debtors Turnover Ratio 
Average Accounts Receivable
Significance: Debtors Turnover Ratio or Debt Collection

Period Ratio measures the quality of debtors since it
indicates the speed with which money is collected from the
debtors ` A shorter collection period implies prompt
payment by debtors ` A longer collection period implies too
liberal and inefficient credit collection performance. The
credit policy should neither be too liberal nor too restrictive.
The former will result in more blockage of funds and bad
debts
40
while the latter Imlak
will Shaikh,Ph.D,
cause lower sales which will
MDI Gurgoan 29/10/2024
reduce profits.
Remarks
 The term average account receivable includes trade debtors

and bills receivable. Average accounts receivable are computed
by taking the average receivables in the beginning and at the
end of the accounting year. The higher the ratio, better it is.
Debtors turnover ratio is used for computing the debt
collection period. The formula for its computation is as
follows:
For example, if the credit sales are Rs 80,000, average
accounts receivable Rs. 20,000, the debtors’ turn-over
ratio and debt collection period will be computed as
follows: Debtors Turnover Ratio = 80,000/ 20,000 = 4
times
Debts Collection Period = 12 months / 4 = 3
months
This means on an average three months credit is allowed to the debtors
An increase in the credit period would result in unnecessary blockage
of funds and with increased possibility of losing money due to debts
becoming bad.
4. Creditors Turnover Ratio:
 This is similar to Debtors Turnover Ratio. It indicates the speed with which
payments for credit purchases are made to creditors. It can be computed
as follows:
Credit Purchases
Creditors Turnover Period 
Average Accounts Payable
The term ‘accounts payable’ include trade creditors and
bills payable.
From the creditors turnover, ratio, creditors payment period can be
computed as follows:
Months or days in a year
Credit Period Enjoyed 
Creditors Turnover
For example, if the credit purchases during a year are Rs

1,00,000, Average accounts payable Rs. 25,000, the Creditors
Turnover Ratio will be ‘4’ (i.e., 1,00,000 / 25,000) while the
creditors payment period would be 3 months (i.e., 12 months/4).
 Significance: The creditors turnover ratio
and the creditors payment period indicate
about the promptness or otherwise in making
payment for credit purchases.
 A higher creditors turnover ratio or a lower
creditors payment period signifies that the
creditors are being paid promptly thus
enhancing the credit-worthiness of the
company. However, a very favourable ratio to
this effect also shows that the business is not
taking full advantage of credit facilities which
can be allowed by the creditors.
5. Stock Turnover Ratio
 The ratio indicates whether the investment in inventory is efficiently
used and whether it is within proper limits. It is calculated as follows:
Cost of Goods Sold during the year

Stock Turnover Ratio 
Average Inventory
Average inventory is calculated by taking the average of
inventory at the beginning and at the end of the accounting
year.
Significance: The ratio signifies the liquidity of
inventory.
A high inventory turnover ratio indicates brisk
sales and vice-versa.
The ratio is therefore a measure to discover possible
trouble in the form of over-stocking or over-valuation of
inventory.
Important Equations for Ratio Analysis
 Gross Profit = Net Sales – COGS
 Operating Cost = COGS + Operating Exp.
 Where operating Exp. = Office & Admin exp. + Selling
& Dist. Exp
 COGS= Opening Stock + New Purchase +
Manufacturing Exp. – Closing Stock
 OR
 COGS = Net Sales –Gross Profit
 Operating Ratio = (Operating Profit / Net Sales)
*100
 Operating Profit = GP – Operating Exp.
 Operating Profit Ratio = 100 – Operating Ratio
 Current Assets = Cash in Hand + Cash at
Bank + Sundry Debtors + Work-in-progress +
Inventories + Pre-paid exp.
 Liquid Assets = Cash + Cash at Bank + Bills
Receivable + Debtors + short term
investment
 Current Liabilities = Creditors + Bills
Payable + Income Tax Payable + Bank of
Overdraft + Outstanding and accrued
expenses
 Debt = Outsiders’ funds
 Equity = Owners’ funds
 Long term fund = Equity share + Preference
Shares + Debentures + Reserve and surplus
+ Retained earning – Goodwill and Preliminary
expenses
 Shareholder’s’ Fund = Equity share +
Preference Shares + Reserve and surplus +
Retained earning – Goodwill and Preliminary
expenses

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Ratio Analysis

FINANCIAL STATEMENT ANALYSIS (FSA)

1 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

3 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

(ii) Creditors; and

6 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Aid in COST COMMUNICATI

7 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

8 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

• Inter - firm and intra – firm

9 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

10 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

11 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Profitabilit Activity Solvency

14 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

16 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

 The ratio is an indicator of the firm’s commitment to

Significance: The ratio is an index of the concern’s

Significance: The ratio is an indicator of short-term solvency of the

Super Quick Assets

Liquid Assets (quick assets)

Daily cash requirements (projected) = Projected cash operating

Significance: The DIR is thought by many people to be a

Profit after Taxes + Depreciati on + Interest on Loan

Significance: The ratio is the key indicator to the

22 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Net Fixed Assets

25 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

26 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

 This ratio indicates the number of times the

Market Price Per Equity Share

27 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

 This ratio expresses the relationship between

Significance. The ratio indicates the overall limit within

30 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

31 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Operating cost includes cost of indirect materials,

Significance. The ratio is the test of the operational

Income before Interest and Tax

Significance: The ratio is significant from the

33 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Dividend per equity share

34 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Dividend Per Share

Net Profit after Interest & Tax

36 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

37 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

Significance. The comparison of fixed assets turnover

Significance: Debtors Turnover Ratio or Debt Collection

 The term average account receivable includes trade debtors

For example, if the credit purchases during a year are Rs

Cost of Goods Sold during the year

47 Imlak Shaikh,Ph.D, MDI Gurgoan 29/10/2024

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