ratio formula

           A) LIQUIDITY RATIOS - SHORTTERM SOLVENCY RATIO FORMULA NUMERATOR DENOMINATOR 1.Current Ratio Current Assets /  Inventories Sundry Crs (for Goods) Current Liabilities + Debtors + OS Expn ( for Service)     + Cash & Bank + Bank OD / CC     + Receivables + Provision for Tax     + Short Term Loans + Proposed / Unclaimed Dividend     + Marketable Investments           2. Quick Ratio or Acid test Ratio Quick Assets /  Current Assets Current Liabilities Quick Liabilities Less : Inventories Less : Bank OD / CC     Less : Prepaid Expenses           3. Absolute Cash Raio (Cash + Marketable Securities) / CL Cash in Hand As above Cash at Bank       Maketable Securities       Short Term Investments           4. Interval Measure Quick Assets / Cash Expenses Per Day As above Annual Cash Expenses / 365   Cash Expenses = Total Expn - Depn - W/off               B) CAPITAL STRUCTURE RATIOS / INDICATOR OF FINANCING TECHNIQUES & LONG TERM SOLVENCY 1. Equity to Total Funds Ratio Shareholder's Funds / Total Funds Equity Share Capital Total Long Term funds employed + Preference Share Capital Debt + Equity     + Reserves & Surplus       Less : Accumulated Losses           2. Debt Equity Ratio Debt / Equity Long Term Borrowed Funds Equity Share Capital   Debentures + Preference Share Capital     Long Term Loans + Reserves & Surplus       Less : Accumulated Losses         3. Capital Gearing Ratio Fixed Charge Bearing Capital / Equity Shareholder's Funds Preference Share Capital Equity Share Capital + Debentures + Reserves & Surplus   + Long Term Loans Less : Accumulated Losses         4. Fixed Asset to Long Term Fund Ratio Fixed Assets / Long Term Funds Net Fixed Assets Shareholder's Fund (Equity) Gross Block Debt   Less : Cum Depreciation           5. Proprietary Ratio Proprietary Funds / Total Assets Equity Share Capital Net Fixed Assets + Preference Share Capital + Total Current Assets   + Reserves & Surplus (only Tangible assets will be included)     Less : Accumulated Losses           Note : Liability Route (ESC + PSC + Reserves & Surplus Less Accumulated Losses) Assets Route ( Net Fixed Assets + Net Working Capital  Less Longterm Liability) C) COVERAGE RATIOS - ABILITY TO SERVE FIXED LIABILITIES 1. Debt Service Coverage Ratio Earnings for Debt Service / (Interest + Instalment) NP After Tax Interest Add : Tax Add : Instatment of Debt    Add : Interest (Principal repaid)     Add : Non Cash Expn (Depn)       Add : Non Operating Adj       (loss on sale of FA)           2. Interest Coverage Ratio EBIT / Interest Sales Less Varial & Fixed Cost Interest (Excluding Interest)       EAT + Tax + Interest           3. Preference Dividend Coverage Ratio EAT / Preference Dividend Earnings After Tax Dividend on Preference Share Capital                   D) TURNOVER / ACTIVITY / PERFORMANCE RATIOS 1. Capital Turnover Ratio Sales / Capital  Employed Sales net of returns Net FA + Net WC (Asset Route)   ESC + PSC + Reserves & Surplus + Debenture & LT Loans Less Accumulated Losses Less Non Trade Investments (Liability Route)                           2. Fixed Asset Turnover Ratio Turnover / Fixed  Assets Sales net of returns Net Fixed Assets             3. Working Capital Turnover Ratio Turnover  /  Net Working Capital Sales net of returns CA Less CL             4. Finished Goods or Stock Turnover Ratio COGS  /  Average    Stock Opening Stock + Purchases - Closing Stock (Opening + Closing) / 2  or (Max + Min Stock) / 2               5. WIP Turnover Ratio Factory Cost / Average Stock of WIP Material + Wages (Open WIP + Close WIP) / 2 + Production OHS           6. Raw Material Turnover Ratio COMC  /  Average   Stock  of RM Opening Stock of  RM + Purchases - Closing Stock (Opening + Closing) / 2            7. Debtors Turnover Ratio Credit Sales / Average Accounts Receivable Credit Sales net of returns Debtors + B/R   (Opening + Closing) / 2          8. Creditors Turnover Ratio Credit Purchases / Avg Accounts Payable Credit Purchase net of returns Creditors + B/P   (Opening + Closing) / 2          E) PROFITABILITY RATIOS BASED ON SALES 1. Gross Profit Ratio Gross Profit / Sales Gross Profit Sales net of returns       2. Operating Profit Ratio Operating Profit / Sales Sales Less Cost of Sales  (or) Sales net of returns   Net Profit       Add : Non Operating Expn       Less : Non Operating Income           3. Net Profit Ratio Net Profit  / Sales Net Profit Sales net of returns       4. Contribution Sales Ratio Contribution / Sales Sales Less Variable Cost Sales net of returns       F) PROFITABILITY RATIOS OWNER'S VIEW POINT 1.ROI or ROCE Total Earnings / Total  Capital Employed Profit After Tax Net FA + Net WC (Asset Route) Add : Tax ESC + PSC + Reserves & Surplus + Debenture & LT Loans Less Accumulated Losses Less Non Trade Investments (Liability Route)     Add : Interest     Add : Non Trading Expn     Less : Non Operating incomes     (Rent, Interest & Dividend)           2. ROE EAT / Net Worth Profit After Tax Net Fixed Assets + Net WC       Less : External Liabilities (Long Term)         3. EPS (PAT - Preference Dividend) / No of Equity Shares Profit After Tax Equity Share Capital / Face Value per Share   Less : Preference Dividend               4. DPS Dividends / No of Equity Shares Profits distributed to Equity shareholders Equity Share Capital / Face Value per Share           5. ROA NP after Tax / Average Total Assets Net Profit After Tax Avg Total Assets or Tangible or Fixed     (Opening + Closing / 2)