### Present Remotely

Send the link below via email or IM

• Invited audience members will follow you as you navigate and present
• People invited to a presentation do not need a Prezi account
• This link expires 10 minutes after you close the presentation

Do you really want to delete this prezi?

Neither you, nor the coeditors you shared it with will be able to recover it again.

You can change this under Settings & Account at any time.

# RATIO ANALYSIS

No description
by

on 7 November 2013

Report abuse

#### Transcript of RATIO ANALYSIS

1993 1994..... .....2012
:
RELATION
Variable
Variable
:
:
:
:
:
:
:
:
:
:
Measure the ability of a company to pay off its short-term liabilities when they fall due.

:Current Ratio
:Quick Ratio
:Absolute Liquid Ratio
Leverage
Ratio
The ratios used to determine about the companies’ financing methods, or the ability to meet the long term obligations
:Debt-Equity Ratio
:Proprietary Ratio
:Capital Gearing Ratio
:Fixed Asset Ratio
:Interest Coverage Ratio
:Dividend Coverage Ratio
:Debt Service Coverage Ratio
Used to assess a business's ability to generate earnings as compared to its expenses and other relevant costs incurred during a specific period of time
:Gross Profit Ratio
:Net Profit Ratio
:Operating Ratio
:Expense Ratio
Measures whether or not a firm has enough resources to pay its debts over the next 12 months
30kgs
150kgs
5 : 1
A technique of interpretation of financial statements with the help of various ratios by showing the quantitative relation between them.
RATIO
ANALYSIS
UTILITY
:
Types Of Ratio Analysis

Activity
Leverage
LIMITATIONS
CURRENT RATIO
:
CREDITOR
EXPENSES
SHORT TERM LOANS
DEBT-EQUITY RATIO
It indicates what proportion of equity and debt the company is using to finance its assets.
Debt-Equity ratio =
Long term
1:2
:
:
It is a popular tool to evaluate the operational performance of the business
: GROSS PROFIT RATIO :
GROSS PROFIT = Sales - COGS

Creditors Rs. 75,000 Cash in hand Rs. 1,00,000
Bills Payable Rs.75,000 Land Rs. 3,00,000
Bills ReceivableRs. 2,00,000
ASSETS
LIABILITIES
CR=100000+200000
75000+75000
=300000
150000

=
2:1
B/S of Management Express as on 31.3.2013
What is Gross profit ratio when the COGS is Rs. 50,000 and the sales are Rs. 1,00,000?
GP =1,00,000-50,000

=
50,000
GPR=50,000 * 100
1,00,000
=1/2*100

=
50%
Net Sales
16,958,000
Net Sales
Current Ratio = 57,653,000
38,542,000
Debt-Equity Ratio = 16,958,000
118,210,000
Gross Profit Ratio = 13,024,000 * 100
35,323,000
Current Ratio = 87,269,017
46,933,052
Debt-Equity Ratio = 15,452,402
117,094,052
Gross Profit Ratio= 15,132,143 * 100
45,270,517
=36.87%
=1.49
=0.14
=33.42%
=1.85
=0.13
Lee Byung-chul
Ronald Wayne
Steve Wozniak
APPLE
APPLE
SAMSUNG
Smartphone Global Market Share 2013
1
RATIO'S
RATIO'S
Current Assets
Current Liabilities
:Current Ratio
:Debt-Equity Ratio
:Gross Profit Ratio
CONCLUSION
1:49
1.85
0.13
0.14
33.42%
36.87%
PRICE
An Apple a day,keeps Samsung away!
APPLE
Management Express
2012
2011
2010
2010
2012
2012
2011
2011
:
:
:
Reserves Rs 2,00,000
Equity Capital Rs2,50,000
Full transcript