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  • Return On Equity (ROE)

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    Syril Thomas
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    This document defines and lists various financial ratios used to analyze a company's liquidity, asset turnover, capital structure, and profitability. The liquidity ratios measure a company's ability to meet short-term obligations and include the current, quick, and cash ratios as well as net working capital. Turnover ratios calculate how efficiently a company uses its assets to generate sales through inventory, debtors, creditors, fixed assets, and total assets. Capital structure ratios analyze financial leverage and include the debt to equity ratio and proprietary ratio. Finally, profitability ratios measure operating performance through gross profit margin, net profit margin, return on assets, return on equity, earnings per share, dividend payout ratios and more.

    Original Description:

    Formula Sheet

    Original Title

    FSA

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    This document defines and lists various financial ratios used to analyze a company's liquidity, asset turnover, capital structure, and profitability. The liquidity ratios measure a company's ability to meet short-term obligations and include the current, quick, and cash ratios as well as net working capital. Turnover ratios calculate how efficiently a company uses its assets to generate sales through inventory, debtors, creditors, fixed assets, and total assets. Capital structure ratios analyze financial leverage and include the debt to equity ratio and proprietary ratio. Finally, profitability ratios measure operating performance through gross profit margin, net profit margin, return on assets, return on equity, earnings per share, dividend payout ratios and more.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
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    Download as xlsx, pdf, or txt
    14 views2 pages

    Return On Equity (ROE)

    Uploaded by

    Syril Thomas
    This document defines and lists various financial ratios used to analyze a company's liquidity, asset turnover, capital structure, and profitability. The liquidity ratios measure a company's ability to meet short-term obligations and include the current, quick, and cash ratios as well as net working capital. Turnover ratios calculate how efficiently a company uses its assets to generate sales through inventory, debtors, creditors, fixed assets, and total assets. Capital structure ratios analyze financial leverage and include the debt to equity ratio and proprietary ratio. Finally, profitability ratios measure operating performance through gross profit margin, net profit margin, return on assets, return on equity, earnings per share, dividend payout ratios and more.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as xlsx, pdf, or txt
    of 2

    LIQUIDITY RATIOS

    Current Ratio
    = CA/CL
    Quick Ratio
    = (CA-Inventories)/CL
    Abs Quick Ratio/ Cash Ratio
    = (Cash+Marketable Securities)/CL
    Net working Capital
    = (CA-CL)

    TURNOVER RATIOS
    INVENTORY TURNOVER RATIO
    = COGS/Average Inventory
    STOCK VELOCITY
    = 360/ITR
    DEBTOR TURNOVER RATIO
    = Net Cr. Sales/Av. Debtors
    DEBTOR VELOCITY
    = 360/DTR
    CREDITOR TURNOVER RATIO
    = Net Credit Purchases/Average Creditors
    CREDITOR VELOCITY
    = 360/CTR
    FIXED ASSET TURNOVER RATIO
    = Net Sales/FA
    TOTAL ASSET TURNOVER RATIO
    = Net Sales/TA

    CAPITAL STRUCTURE RATIOS


    Debt Equity Ratio
    = Long term debt / Shareholders' Equity
    Proprietory Ratio
    = Net Worth/Total Assets
    Interest Coverage Ratio = EBIT/Fixed Interest

    PROFITABILITY RATIOS
    Gross Profit Margin (GPM)
    GPM = (Gross Profit/Net Sales)
    Net Profit Margin (NPM)
    NPM = PAT/Net Sales
    Operating Profit Ratio (OPR)
    OPR = (Optng Profit/Net Sales)
    Return on Total Assets (ROTA)
    ROTA = (EBIT)(1-t)/Total Assets
    Return on Equity (ROE)
    ROE = (PAT/Net Worth)
    Earning Per Share (EPS)
    EPS = PAT/No of Shares (N)
    Dividend Per Share (DPS)
    DPS = Div Paid/No of Shares(N)
    Dividend Payout Ratio (DPO)
    DPO = DPS/EPS

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