I. Liquidity Rates :
1. Current Ratio =
2. Liquid or Quick Ratio =
3. Super Quick Ratio =
2. Debtors Turnover Ratio =
(! "# )
Average collection period = × No. of months or Days in a years
&
3. Creditors Turnover Ratio =
' ( ( "# ' ( )
' (
Average payable period = ' &
× No. of months or Days in a year.
4. Total assets Turnover ratio =
)
5. Fixed Assets Turnover Ratio =* + ( ! ' )
)
6. Current Assets Turnover Ratio =
)
7. Working capital Turnover ratio =
, '
)
8. Capital Turnover ratio = ' -.' (
)
9. Net worth Turnover Ratio=
, &
III. Profitability Ratios:
a. Based on sales
'
1. Gross profit margin Ratio = × 100 or = × 100
/'
2. Operating Ratio =
× 100
/' '
3. Operating profit ratio =
× 100
b. Based on capital
'
1. Return on capital Employed = × 100 = Assets turnover × profit margin
' -.' (
' +
2. Return on shareholders’ Investment = × 100
)& & * , &
' + ' .!
3. Return on equity shareholder fund =
- ( & &
× 100
' + '
4. Return on equity capital = ( & ' (' ')
× 100
' + 1
5. Return on total Assets = ×100
. ' -.' (
4. Fixed Assets Ratio = *+ ( ' )
2 '
5. Capital gearing Ratio =
*+ '
' +
6. Debt – service or Interest coverage Ratio =
* + 1 &
& * , +
7. Cash to Debt – service Ratio = 1 " '' ' ÷
4 +
! ' & ! )
3.Dividend yield Ratio = 5 × 100 or 5
' ' & )
! ' & ! )
5. Dividend payout Ratio =- ' &
× 100 or - )
× 100