Liquidity Ratios

S. No.
1
2
3

RATIOS
Current Ratio
Quick Ratio
Absolute Liquid Ratio

FORMULAS
Current Assets/Current Liabilities
Liquid Assets/Current Liabilities
Absolute Liquid Assets/Current Liabilities

Profitability Ratios
S.
No.
1
2
3
4
5
6
7
8
9
10
11
12

RATIOS

FORMULAS

Gross Profit Ratio

Operating Cost Ratio
Operating Profit ratio
Net Profit Ratio

Gross Profit/Net Sales X 100

Operating Cost/Net Sales X 100
Operating Profit/Net Sales X 100
Operating Profit/Net Sales X 100
Net Profit After Interest And Taxes/ Shareholders Funds or
Return on Investment Ratio
Investments X 100
Return on Capital
Net Profit after Taxes/ Gross Capital Employed X 100
Employed Ratio
Net Profit After Tax & Preference Dividend /No of Equity
Earnings Per Share Ratio
Shares
Dividend Pay Out Ratio
Dividend Per Equity Share/Earning Per Equity Share X 100
Net Profit after Tax & Preference Dividend / No. of Equity
Earning Per Equity Share
Share
Dividend Yield Ratio
Dividend Per Share/ Market Value Per Share X 100
Market Price Per Share Equity Share/ Earning Per Share X
Price Earnings Ratio
100
Net Profit to Net Worth
Net Profit after Taxes / Shareholders Net Worth X 100
Ratio

Working Capital Ratios

S.
No.

RATIOS

1
2

Inventory Ratio
Debtors Turnover Ratio

Debt Collection Ratio

4
5
6

Creditors Turnover Ratio

Average Payment Period
Working Capital Turnover

FORMULAS
Net Sales / Inventory
Total Sales / Account Receivables
Receivables x Months or days in a year / Net Credit Sales
for the year
Net Credit Purchases / Average Accounts Payable
Average Trade Creditors / Net Credit Purchases X 100
Net Sales / Working Capital

7
8

Ratio
Fixed Assets Turnover Ratio Cost of goods Sold / Total Fixed Assets
Capital Turnover Ratio
Cost of Sales / Capital Employed

Capital Structure Ratios

S. No.
1
2
3
4

RATIOS
Debt Equity Ratio
Proprietary Ratio
Capital Gearing ratio
Debt Service Ratio

FORMULAS
Total Long Term Debts / Shareholders Fund
Shareholders Fund/ Total Assets
Equity Share Capital / Fixed Interest Bearing Funds
Net profit Before Interest & Taxes / Fixed Interest Charges

Overall Profitability Ratio

S. No.
1

RATIOS
Overall Profit Ability Ratio

FORMULAS
Net Profit / Total Assets