Ratios

1. Gross Profit Ratio = Gross Profit x 100

Net sales

For 2008-09 = 6116.95 x 100 = 34.73% for 2007-08 = 5997.61 x 100 = 39.06%

17611.22 15353.08

2. Net profit Ratio = Net Profit after Tax x 100

Net Sales

For 2008-09 = 1463.99 x 100 = 8.31% For 2007-08 = 1896.69 x 100 = 12.35%

17611.22 15353.08

3. Operating Profit Ratio = Operating Profit x 100

Net Sales

For 2008-09 = 1899.89 x 100 = 10.79% For 2007-08 = 2379.97 x 100 = 15.5%

17611.22 15353.08

4. Operating Ratio = Cost of goods sold + Operating expenses x 100

Net Sales

For 2008-09 = 11495.27 + 4262.84 x 100 = 89.48%

17611.22

For 2007-08 = 9355.47 + 3653.59 x 100 = 84.73%

15353.08

5. Operating Expense Ratios:

A. Cost of goods sold Ratio = Cost of Goods Sold x 100

Net Sales

For 2008-09 = 11495.27 x 100 = 65.27% For 2007-08 = 9355.47 x 100 = 60.94%

17611.22 15353.08

B. Administrative Expenses Ratio = Administrative Expenses x 100

Net Sales

For 2008-09 = 2908.31 x 100 = 16.51% For 2007-08 = 2378.14 x 100 = 15.49%

17611.22 15353.08
 C. Selling and Distribution Expenses Ratio = S & D Expenses x 100

Net Sales

For 2008-09 = 902.82 x 100 = 5.13% For 2007-08 = 1060.67 x 100 = 6.91%

17611.22 15353.08

D. Financial Expenses Ratio = Financial Expenses x 100

Net Sales

For 2008-09 = 451.71 x 100 = 2.56% For 2007-08 = 214.78 x 100 = 1.40%

17611.22 15353.08

6. Current Ratio = Current Assets

Current Liabilities

For 2008-09 = 7052.80 = 2.49 : 1 For 2007-08 = 7272.26 = 2.92 : 1

2835.75 2492.93

7. Quick / Liquid Ratio = Quick / Liquid Assets

Quick / Liquid Liabilities

= Current Assets – Stock – Bills Receivable

Current Liabilities – Bank O/d – Inc. Recd. In Advance

For 2008-09 = 7052.80 – 2288.93 – nil = 1.68 : 1

2835.75 – nil – nil

For 2007-08 = 7272.26 – 2655.44 – Nil = 1.85 : 1

2492.93 – nil – nil

8. Stock to Working Capital Ratio = Stock x 100

Working Capital

For 2008-09 = 2288.93 x 100 = 54.28% For 2007-08 = 2655.44 x 100 = 55.55%

4217.05 4779.33

9. Propreitory Ratio = Shareholders’ Fund

Total Assets

For 2008-09 = 7336.15 x 100 = 54.92% For 2007-08 = 6424.81 x 100 = 54.11%

13357.16 11873.69
10. Debt Equity Ratio = Borrowed Funds

Proprietor’s Funds

For 2008-09 = 5580.14 = 0.76 : 1 For 2007-08 = 5025.98 = 0.78 : 1

7336.15 6424.81

11. Return on Capital Employed = Profit (before Interest, Tax) x 100

Capital Employed

For 2008-09 = 1632.01 + 317.09 x 100 For 2007-08 = 2242.76 + 160.70 x 100

11873.69 13357.16

= 17.54% = 9.84%

12. Return on Shareholders’ Fund = Net Profit After Tax x 100

Sharehlders’ Fund

For 2008-09 = 1463.79 x 100 = 29.25% For 2007-08 = 1879.54 x 100 = 19.95%

7336.15 6424.81

13. Return On Equity Shareholders’ Funds = NPAT – Preference Dividend x 100

Equity Shareholders’ Fund

For 2008-09 = 1463.79 – 0.75 x 100 For 2007-08 = 1879.54 – nil x 100

7336.15 6424.81 – 28.75

= 19.94% = 29.39%

14. Capital Gearing Ratio = Funds bearing fixed rate of interest & dividend

Funds not bearing fixed rate of interest & dividend

= Preference Shares + Debenture + Long Term Bank Loan

Equity Share Capital + Reserves and Surplus – Misc Exp

For 2008-09 = nil + 1500 + 796.23 = 0.32 : 1

253.07 + 7083.08 – 244.76

For 2007-08 = 28.75 + nil + 928.59 = 0.16 : 1

253.07 + 6142.99 – 252.27

15. Earning Per Share = NPAT – Preference Dividend

No. Of Shares

For 2008-09 = 1463.79 – 0.75 = Rs. 5.78 For 2007-08 = 1879.54 – nil = Rs. 7.42

25,30,61,306 25,30,61,306
16. Price Earning Ratio = Market price per share

Earning per share

For 2008-09 = 90 = 15.57 For 2007-08 = 155.90 = 21.01

5.78 7.42

17. Dividend per share = Total equity dividend

No. Of shares

For 2008-09 = 442.87 = Rs. 1.75 per share

25,30,61,306

For 2007-08 = 442.87 = Rs. 1.75 per share

25,30,61,306

18. Dividend payout ratio = Dividend per share

Earning per share

For 2008-09 = 1.75 x 100 = 30.28% For 2007-08 = 1.75 x 100 = 23.59%

5.78 7.42

19. Dividend yield ratio = Dividend per share x 100

Market Price per share

For 2008-09 = 1.75 x 100 = 1.94% For 2007-08 = 1.75 x 100 = 1.12%

90 155.90

20. Inventory Turnover Ratio = Cost of goods sold x 100

Average Stock

For 2008-09 = 11495.27 = 8.72 times For 2007-08 = 9355.47 = 8.98 times

1317.16 1041.66

21. Debtors Turnover Ratio = Net Credit Sales

Avg. Debtors + Avg. Bills Receivable

For 2008-09 = 17611.22 = 7.57 For 2007-08 = 15353.08 = 6.86

2325.76 2238.48

22. Debtors’ Velocity = 365 days

D.T.R

For 2008-09 = 365 days = 48 days For 2007-08 = 365 days = 53 days

7.57 6.86
23. Creditors’ Turnover Ratio = Net Sales

Avg. Creditors + Avg. Bills Payable

For 2008-09 = 17611.22 = 33.50 For 2007-08 = 15353.08 = 22.98

525.71 668.22

24. Creditors’ Velocity = 365 days

C.T.R

For 2008-09 = 365 days = 11 days For 2007-08 = 365 days = 16 days

33.50 22.98

25. Fixed Assets Turnover Ratio = Net sales

Avg. Fixed Assets

For 2008-09 = 17611.22 = 2.89 For 2007-08 = 15353.08 = 2.81

6101.84 5470.67

26. Working Capital Turnover Ratio = Net Sales

Avg. Working Capital

For 2008-09 = 16482.15 = 3.66 For 2007-08 = 15606.54 = 3.27

4498.19 4779.3