RATIOS

Question 1

asset turnover ratio

Answer 1

rfo/avg total assets

Question 2

fixed asset turnover ratio

Answer 2

rfo/ net avg fixed assets

Question 3

working capital turnover ratio

Answer 3

rfo/ net avg working cap

Question 4

return on assets

Answer 4

pbit / avg total assets

Question 5

return on equity

Answer 5

pat / avg equity shareholders funds = pat / eq+ other eq - fictitious assets

Question 6

return on cap employed/roi

Answer 6

pbit - int on short term debt / avg cap employed = pbit - int on short term borrowings / eq+ other eq + long term borrowings or non current assets + working cap - fictitious assets

Question 7

interest coverage ratio

Answer 7

pbit / interest expenses on long term debt

Question 8

eps

Answer 8

pat / no. of equity shares o/s

Question 9

bvps

Answer 9

eq + other eq - Fict assets/ no. of shares o/s

Question 10

price earnings ratio

Answer 10

mp/eps

Question 11

market price to book value ratio

Answer 11

mp / bvps

Question 12

dividend payout ratio

Answer 12

dps/eps or dividend/ pat

Question 13

retention ratio

Answer 13

eps-dps/eps pr pat (net income) - dividend/ net income (pat)

Question 14

operating ratio

Answer 14

cost of rfo + operating expenses / rfo

Question 15

cost of rfo

Answer 15

op stock + purchases + direct exps - closing stock

Question 16

operating profit

Answer 16

1. gp + other op income - op exps
2. np - non op income + Non op exps

Question 17

proprietary ratio

Answer 17

shareholders funds/ total assets