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LIQUDITY RATIOS
Stock + debtors + cash & bank bal +pre paid exp
1) Current ratio = ---------------------------------------------------------------------
creditors + bank overdraft +o/s expenses
net profit
2) Net profit ratio = ------------------ * 100
sales
net profit before tax + interest
3)Return on capital employeed = ------------------------------------------------- * 100
(equity+preferance + profit & loss
+ reserves + debenture +
loans )
Performance ratios(activity,turnover)
debentures + loans
Debt eqity ratio = -------------------------------------------------------------------
equity + preferance + reserves+ p & l a/c
Other ratios
net profit before tax + interest
Interest coverage ratio = ----------------------------------------------------------
interest on loan