all formulas of accounting ratio
Answers
Answer:
S. No. RATIOS FORMULAS
1 Current Ratio Current Assets/Current Liabilities
2 Quick Ratio Liquid Assets/Current Liabilities
3 Absolute Liquid Ratio Absolute Liquid Assets/Current Liabilities
Answer:
current ratio = current assets (including inventory) / current liabilities
quick ratio = current assets (excluding inventory) / current liabilities
gross profit margin ratio = gross profit / net assets
net profit margin ratio = net profit/ net assets
gearing ratio = (non current liabilities + preference shares)/ ( non current liabilities + preference shares +all reserves)
inventory turnover ratio = cost of sales / average inventory
operating profit margin ratio = operating profit / sales
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