S.

NO NAME OF THE RATIO'S & PARAMETERS

A
1 Liquidity Ratio
2 Solvency Ratio
3 Profitability Ratio
4 Activity Ratio
5 Valuation Ratio
B
6 Reserves to Share Capital (or) 5yrs Trend in Reserves
7 Free Cash-Flows
8 Shareholding Pattern - Plegged Shares
 HOW TO CALCULATE ?

Current Ratio = Current Assets/Current Liabilities.

Debt to Equity Ratio = Total longterm Debt/Shareholder's Funds.
Return on Capital Employed(ROCE) = EBIT/Total Capital Employed.
Inventory Turnover Ratio = COGS/Average Inventory.
P/E = Market Price Per Share/EPS.

In BalanceSheet.
Cash flow from Operations - Purchase of Fixed Assets+Sale of Fixed Assets.
In Annual Report.
 WHAT DO WE ACHIEVE ?

Understanding the Liquidity Position of Company.

Analysing the Capital Structure(loan funds vs Own funds.
It Measures the Profitability or Return on Invested Money.
It Measures the Operational Efficiency.
How Costly the Share is Value.

It Tells About How much Reserves they Have .

Measures Cash Available with the Company for Operation for the Bussines.
Understand the Number of Share Plegged by the Promoter.
 INTERPRETATION

Ideal:- 2:1.
MAX:- 2:1.
Higher the better (Atleast 10%).
Higher the better (number of times inventory was Replenished).
Higher = Costly,Lower = Cheap (Can be Determine with Industry P/E).

Increasing Trend in Reserves = Good, Higher the Ratio=Chances of getting Bonus/Dividends.

Higher the Better.
More number of Plegged Shares = Bad Sign, Should be Ideally '0'.