Financial Ratios (1 Viewer)

[Dash]

~::.Financial Ratios.::~


Liquidity:
1) Current Ratio = (Current Assets) / (Current Liabilities)

Solvency:
2) Debt to Equity Ratio = (Total Liabilities) / (Owner's Equity)
3) Gearing or Equity Ratio = (Total Liabilities) / (Total Assets)

Efficiency:
4) Accounts Receivable Turnover Rate = (Sales) / (Accounts Receivables)
5) Expense Ratio = (Total expenses) / (Sales) x 100

Profitablilty:
6) Net Profit Ratio = (Net Profit) / (Sales) x 100
7) Gross Profit Ratio = (Gross Profit) / (Sales) x 100
8) Return on Owner's Equity = (Net Profit) / (Owner's Equity) x 100

Other formulae:
9) GP = (Sales Revenue) - (COGS)
10) COGS = (opening incentory + purchases) - (Closing Inventory)
11) Working Capital = (Current Assets) - (Current Liablilites)
12) Assets = (Liabilities) + (Owner's Equity)
13) Net Profit = (Gross Profit) - (Expenses)

 

[ezzy85]

Originally posted by Dash
Are these the ONLY financial ratios that the syllabus asks us to know?

1) Current Ratio (Liquidity)
2) Debt to Equity Ratio
3) Gearing or Equity Ratio
4) Efficency Ratio
5) Expense Ratio
6) Net Profit Ratio
7) Gross Profit Ratio
8) Return on Owner's Equity
9) GP = (Sales Revenue) - (COGS)
10) COGS = (opening incentory + purchases) - Closing Inventory
11) Working Capital = (Current Assets) - (Current Liablilites)
12) Assets = Liabilities + Owner's Equity

isnt efficiency ratio the overall category for measuring efficiency? accounts rec. turnover and other turnover ratios make up the efficiency ratios. anyway, tell us what the helpline people say about it.

 

[Dash]

Ok, I changed it... Is that right now???

The reason why I'm asking is because the business studies excel details several other ratios that I haven't seen! So Im not sure if we're required to know them.

 

[ezzy85]

Originally posted by Dash
Ok, I changed it... Is that right now???

The reason why I'm asking is because the business studies excel details several other ratios that I haven't seen! So Im not sure if we're required to know them.

according to the syllabus:

current, gearing, gp, np, return on oe, expense, accounts receivable turnover.

i guess it wont hurt to learn the ones your thinking of to be on the safe side.

 

[Dash]

Argh... If they're not in the syllabus I'm not bothering...
There are too many to learn then
Neways, I'll call the Help Line and post up what they say

 

[~**PinG**~]

Hey!

Thanks Dash for posting up the financial forumals.

I would have gone mad, trying to look through my books, and not knowing what to find if you hadn't posted up the ratios.

Thanks.

~**PinG**~

 

[Dash]

Hehe... no problemo