RATIO FORMULA’S SHEET FOR FINANCIAL REPORTING ANALYSIS PROJECT

INSTRUCTOR: SHAKEEL AHMED

ASSISTANT: SUMBUL AMIR
 FORMULA’S FOR RATIO ANALYSIS FINANCIAL REPORTING AND ANALYSIS – SPRING’20

COMMERCIAL BANKS

Ratio Type Formulas

Investors Ratio
EPS Basic Net Profit / Weighted Average No. Of Shares
EPS Diluted (Net Profit – Preference Dividend) / Weighted Average No. Of Shares
Dividend Per Share Dividends / Weighted Average No. Of Shares
Dividend Payout Ratio Dividend Per Share / Earnings Per Share
Retention Ratio 1 - Payout Ratio
Growth Rate Retention Ratio x Return On Equity
Profitability Ratios
Net Profit Margin Net Profit / Revenue
Op Margin Operating Profit / Revenue
Pre-Tax Margin EBT / Average Total Capital Employed
Operating ROA Operating Income / Average Total Assets
Spread Ratio Interest Income / Interest Expense
Net Interest Margin Ratio (Total Interest Income - Total Interest Expense) / Total Assets
Return On Assets Net Profit / Average Total Assets
Return On Equity Net Profit / Average Total Equity
Interest Ratio Interest Paid / Interest Earned
Administrative Expenses To PBT Admin Expenses / Profit Before Tax
ROCE EBIT / Average Total Capital Employed
Operating Expense Ratio Operating Expense / Total Income
Gain Ratio Total Gains / Total Income
Liquidity Ratios
Cash & Balances To Total Assets Cash & Balances With Bank / Total Assets
Total Deposits To Other Accounts Total Deposits And Other Accounts / Total Assets
Advances And Total Assets Advances/Total Assets
Total Liabilities To Total Assets Total Liabilities / Total Assets
Gross Advances To Deposits Total Advances / Deposits
Gross Advances To Borrowing Gross Advances / (Borrowing + Deposits)
Asset Quality Ratios
NPL To Advances NPL To Gross Advances
Provision Against NPL And Advances Provision Against NPL / Gross Advances
NPL To Equity Ratio NPL / Equity
NPL Write Off To NPL Ratio NPL Write Off / NPL
NPL Provision To NPL Ratio NPL Provision / NPL
Capital/Leverage Ratio
Capital Ratio Total Equity / Total Assets
Breakup Value Per Share Total Equity / Weightage Average No Of Shares
Capital Adequacy Ratio (Tier 1 Capital +Tier 2 Capital) / Total Risk Weighted Assets

NPL Stands for: Non Performing Loans

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 FORMULA’S FOR RATIO ANALYSIS FINANCIAL REPORTING AND ANALYSIS – SPRING’20

MODARBA’S / MUTUAL FUNDS / INVESTMENT BANKS / INSURANCE COMPANIES

Ratio Type Formulas

Investors Ratio
EPS Basic Net Profit / Weighted Average No. Of Shares
EPS Diluted (Net Profit – Preference Dividend) / Weighted Average No. Of Shares
Dividend Per Share Dividends / Weighted Average No. Of Shares
Dividend Payout Ratio Dividend Per Share / Earnings Per Share
Retention Ratio 1 - Payout Ratio
Growth Rate Retention Ratio x Return On Equity
Profitability Ratios
Net Profit Margin Net Profit / Revenue
Op Margin Operating Profit / Revenue
Pre-Tax Margin EBT / Average Total Capital Employed
Operating ROA Operating Income / Average Total Assets
Return On Assets Net Profit / Average Total Assets
Return On Equity Net Profit / Average Total Equity
Administrative Expenses To PBT Admin Expenses / Profit Before Tax
ROCE EBIT / Average Total Capital Employed
Operating Expense Ratio Operating Expense / Total Income
Liquidity Ratios
Current Ratio Current Assets / Current Liabilities
Quick Ratio (Cash + Receivables) / Current Liabilities
Capital/Leverage Ratio
Capital Ratio Total Equity / Total Assets
Breakup Value Per Share Total Equity / Weightage Average No Of Shares
Debt To Asset Ratio Total Debt / Total Assets
Debt To Capital Ratio Total Debt / (Total Debt +Total Shareholder Equity)

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 FORMULA’S FOR RATIO ANALYSIS FINANCIAL REPORTING AND ANALYSIS – SPRING’20

MANUFACTURING / SERVICES

Ratio Type Formulas

Investors Ratio
EPS Basic Net Profit / Weighted Average No. Of Shares
EPS Diluted (Net Profit – Preference Dividend) / Weighted Average No. Of Shares
Dividend Per Share Dividends / Weighted Average No. Of Shares
Dividend Payout Ratio Dividend Per Share / Earnings Per Share
Retention Ratio 1 - Payout Ratio
Growth Rate Retention Ratio x Return On Equity
Profitability Ratios
Net Profit Margin Net Profit / Revenue
Op Margin Operating Profit / Revenue
Pre-Tax Margin EBT / Average Total Capital Employed
Operating ROA Operating Income / Average Total Assets
Return On Assets Net Profit / Average Total Assets
Return On Equity Net Profit / Average Total Equity
Administrative Expenses To PBT Admin Expenses / Profit Before Tax
ROCE EBIT / Average Total Capital Employed
Operating Expense Ratio Operating Expense / Total Income
Liquidity Ratios
Acid-Test Ratio (Current Assets – Inventory) / Current Liabilities
Cash Ratio (Cash And Bank Balances + Short Term Investments) / Current Liabilities
Current Ratio Current Assets / Current Liabilities
Net Working Capital Current Assets Minus Current Liabilities.
Activity Ratios
Receivable Turnover Ratio Sales / Average Accounts Receivable
Average Collection Period 365 / Receivable Turnover Ratio
Inventory Turnover Ratio Cost Of Goods Sold / Average Inventory
Days Sales In Inventory 365 / Inventory Turnover Ratio
Account Payable Days Cost Of Sales / Trade And Other Payables
Average Payment Days 365 / Average Payment Days
Operating Cycle Days Sales In Inventory + Average Collection Period
Cash Conversion Cycle Operating Cycle – Average Payment Days
Asset Turnover Ratio Net Revenue / Total Assets
Interest Coverage Ratio EBIT / Interest Expense
Effective Tax Rate Provision of Taxation (Deferred + current provision) / EBT
Capital/Leverage Ratios
Capital Ratio Total Equity / Total Assets
Breakup Value Per Share Total Equity / Weightage Average No Of Shares
Debt To Asset Ratio Total Debt / Total Assets
Debt To Capital Ratio Total Debt / (Total Debt +Total Shareholder Equity)

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FORMULA’S FOR RATIO ANALYSIS FINANCIAL REPORTING AND ANALYSIS – SPRING’20

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