All ratio analysis formulas by vuhelp 2011

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Download all ratio analysis formulas by vuhelp
Ratio Analysis
n Ratio is relationship between two or more different figures or amounts
<img alt="*" width="13" height="13"> Different categories in Ratio Analysis
n Current Ratio
n Long Term Ratio
n Profitability Ratio
n Markup Ratio
Current Ratio Or Short Term Solvency Ratio Or Working Capital Ratio


<img alt="*" width="13" height="13"> Current Ratio is a relationship between Current Asset & Current Liabilities
<img alt="*" width="13" height="13"> Current Ratio = Current Assets / Current Liabilities
<img alt="*" width="13" height="13"> Prudent Ratio is 2 : 1
Acid Test Ratio Or Quick Ratio

n Relation between Current Asset & Current Liabilities
n But we less Inventory Items from Current Assets
n Formula
<img alt="*" width="13" height="13"> Q.R = C.A – Inventories / C.L
Long Term Solvency Ratio

Basically Showing Financial Leverage & also show the abilities of firm to pay its long term liabilities

n Total Debt Ratio:
n T.D.R = Total Debt / Total Asset
OR
= (Total Assets - Total Equity) / Total Assets
DEBT EQUITY RATIO

FORMULA

<img alt="*" width="13" height="13"> Debt Equity Ratio = Total Debt / Equity

TIME INTEREST EARNED RATIO
FORMULA:
= Earning before Tax / Interest Expense

INVENTORY TURNOVER RATIO
FORMULA:
=Cost of Gods Sold/Average Inventory
MARKET RATIOS
Earning Per Share
=Net Income / Total Shares (O/S)
PAYABLE TURNOVER RATIO
FORMULA:
=Cost of Gods Sold/Trade Creditors

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