211. Price Earning Ratio
: it a measure for determining the value
of a share. May also be used to measure the rate of return expected by
investors.
Formula : Market price
of share (MPS) X 100
Earning per share (EPS)
212.Current Ratio : it
measures short-term debt paying ability.
Formula : Current
Assets
Current Liabilities
213. Debt-Equity Ratio : it
indicates the percentage of funds being financed through borrowings; a measure
of the extent of trading on equity.
Formula : Total Long-term Debt
Shareholders funds
214.Fixed Assets Ratio :
This ratio explains whether the firm has raised adepuate long-term funds to
meet its fixed assets requirements.
Formula Fixed Assets
Long-term Funds
215 . Quick Ratio : The
ratio termed as ‘ liquidity ratio’. The ratio is ascertained y comparing the
liquid assets to current liabilities.
Formula : Liquid Assets
Current Liabilities
216. Stock Turnover Ratio :
the ratio indicates whether investment in inventory in efficiently used or not.
It, therefore explains whether investment in inventory within proper limits or
not.
Formula : cost of goods sold
Average stock
217. Debtors Turnover Ratio
: the ratio the better it is, since it would indicate that debts are being
collected more promptly. The ration helps in cash budgeting since the flow of
cash from customers can be worked out on the basis of sales.
Formula : Credit sales
Average
Accounts Receivable
218.Creditors Turnover Ratio
: it indicates the speed with which the payments for credit purchases are made
to the creditors.
Formula : Credit Purchases
Average Accounts Payable
219. Working capital
turnover ratio : it is also known as Working Capital Leverage Ratio. This ratio
indicates whether or not working capital has been effectively utilized in
making sales.
Formula : Net Sales
Working
Capital
220.Fixed Assets Turnover Ratio : This ratio indicates the extent to which the investments in fixed
assets contributes towards sales.
Formula : Net Sales
Fixed
Assets
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