Escolar Documentos
Profissional Documentos
Cultura Documentos
Minimum level of inventory Re-order level - (Average rate of consumption x Average time of delivery) Maximum level of inventory Re-order level + Re-order quantity - (Minimum consumption x Minimum re-order period) Re-order level = Maximum re-order period x Maximum usage OR Minimum level + (Average rate of consumption x Average time to obtain fresh supplies) Average inventory level = Minimum level + 1/2 Re-order quantity OR Maximum level + Minimum level / 2 Danger level + Average consumption x Lead time for emergency purchases ECONOMIC ORDER QUANTITY: EOQ= 2AS C Annual usage units Ordering cost per order Annual carrying cos of one unit i.e. (carrying cost % x cost of one unit)
b.
A S C
FINANCIAL STATEMENT ANALYSIS A. PROFITABILITY RATIOS - BASED ON SALES 1 Cost of Goods sold ratio: Cost of Goods sold ratio 2 Gross Profit Ratio or Gross Margin % Gross Profit Ratio 3 Expenses Ratio a Office & Admin. Expenses Ratio b c Selling & Dist. Expenses Ratio Net operating Profit Ratio
= = =
Office & Admin. Expenses / Net Sales X 100 Selling & Dist. Expenses / Net Sales X 100 Net operating profits / EBIT Net Sales Fixed Expenses / Net Sales X 100 Variable Expenses Ratio / Net Sales X 100 X 100
d e
= =
= =
Operating Cost / Net Sales X 100 OR Cost of Goods Sold + Other Operating Exp. / Net Sales X 100
5 Net operating Profit Ratio Net operating Profit Ratio 6 Net Profit Ratio or Net Margin % Net Profit Ratio B
Operating Net Profit before Int. & Taxes / Net Sales X 100
7 Return on Capital Employed or Return on Investment Return on Capital Employed = Operating Net Profit before Int.& Taxes / Capital Employed X 100 8 Return on shareholders fund ratio Return on shareholders fund ratio 9 Return on Equity Return on Equity Ratio 10 Return on Operating Assets Return on Operating Assets 11 Return on Total Assets Return on Total Assets
ACTIVITY OR PERFORMANCE OR TURNOVER RATIOS 1 Fixed Assets Turnover Ratio Fixed Assets Turnover Ratio 2 Total Assets Turnover Ratio Total Assets Turnover Ratio 3 Current Assets Turnover Ratio 4 Capital Turnover Ratio 5 Net Working Capital Turnover Ratio
= = = =
Net Sales / Total Assets Net Sales / Current Assets Net Sales / Capital Employed Net Sales / Net Working Capital
6 Debtors Turnover Ratio or Receivables Turnover Ratio Debtors Turnover Ratio = Net Credit Sales / Debtors 7 Stock or Inventory Turnover Ratio Stock or Inventory Turnover Ratio
Cost of Goods Sold / Cost of Sales Stock in trade / Finished goods inventory
8 Raw Materials Turnover Ratio Raw Materials Turnover Ratio 9 Work in Progress Turnover Ratio Work in Progress Turnover Ratio
10 Creditors or Accounts Payable Turnover Ratio Creditors Turnover Ratio = 11 Average Collection Period Average Collection Period
= =
360days or 12 months or 52 weeks / Debtors Turnover Ratio OR Average Debtors / Net Credit Sales X 360 days or 12 months or 52 wee
12 Average Inventory Conversio / holding Period Average Inventory Conversion Period= Avg.Stock in trade holding period =
360days or 12 months or 52 weeks / Stock Turnover Ratio OR Average Stock / Cost of Goods Sold X 360 days or 12 months or 52 wee
13 Raw Materials Inventory Conversion Period Raw Material Conversion Period = = 14 WIP Inventory Conversion Period WIP Inventory Conversion Period
360days or 12 months or 52 weeks / Raw Material Turnover Ratio OR Average Stock of RM/ RM Consumed X 360 days or 12 months or 52 we
= =
360days or 12 months or 52 weeks / WIP Turnover Ratio OR Average Stock / Net Factory Cost X 360 days or 12 months or 52 weeks
= =
360days or 12 months or 52 weeks / Creditors Turnover Ratio OR AverageCreditors / Net Credit Purchases X 360 days or 12 months or 52
2 Preference Dividends Coverage Ratio Preference Dividends Coverage Ratio = 3 Equity Dividend Coverage Ratio Equity Dividend Coverage Ratio
EAT / PD
= =
EPS / DPS OR Earnings available for Eq. Sharholders / Dividend to Eq. Sharhelders
4 Total Dividends Coverage Ratio Total Dividends Coverage Ratio 5 Fixed Charges Coverage Ratio Fixed Charges Coverage Ratio 6 Debt Service Coverage Ratio Debt Service Coverage Ratio
EAT + Int. + Dep. + Other non cash expenses Int.on Long Term Debt + Installment of Principal
MARKET TEST OR MARKET STRENGTH ANALYSIS OR INVESTOR ANALYSIS RATIOS: 1 Dividend Per Share or DPS Dividend Per Share or DPS 2 Earning Per Share or EPS Earning Per Share or EPS
3 Book value per share / Net Asset Value per Share Book value per share = Eq.Sh.Hold Funds / No. of ES 4 Dividend Yield in Equity Shares Dividend Yield in Equity Shares 5 Earning Yield ratio Earning Yield ratio 6 Dividend Pay out Ratio Dividend Pay out Ratio 7 Retention Ratio Retention Ratio 8 Price Earning Ratio or P/E Ratio Price Earning Ratio or P/E Ratio
MPS / EPS
9 Market Value to Book Value Per Share Market Value to Book Value Per Share = LIQUIDITY / SHORT TERM SOLVENCY RATIO 1 Current Ratio
MPS / BPS
Current Ratio 2 Acid Test / Quick / Liquid Ratio Liquid Ratio Quick Ratio 3 Absolute Liquidity / Cash Ratio Cash Ratio
= =
Cash in hand & at bank + Short term marketable securities Current Liabilities
4 Defensive Interval / Cah Interval Ratio Defensive interval ratio 5 Ratio of Inventory to WC Inventory to Working Capital Ratio LONG TERM SOLVENCY RATIOS 1 Debt - Equity Ratio D/E Ratio
Inventory / WC
= =
2 Debt to Total Funds Ratio / Debt Ratio Debt Ratio 3 Debt to Total Asset / Debt to value Ratio Debt to total asset ratio 4 Proprietary Ratio Proprietary Ratio 5 Capital Gearing Ratio Capital Gearing Ratio 6 Fixed Assets Ratio Fixed Assets Ratio
FA / Capital Employed
7 Ratio of Current Assets To Fixed Assets Ratio of Current Assets To Fixed Assets =
CA / FA
Sales X 100
s X 100
mployed X 100
nds X 100
s + B/P)
over Ratio
12 months or 52 weeks
Turnover Ratio
or 12 months or 52 weeks
2 months or 52 weeks
nover Ratio
ys or 12 months or 52 weeks
o Eq. Sharhelders
ecurities
Net Worth.
d. Funds