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Accounting ratios Cheat Sheet (DRAFT) by

all the accounting ratios and its formulas.

This is a draft cheat sheet. It is a work in progress and is not finished yet.

solvency ratios

debt to equity ratio=­dbt­/eq­uit­y(s­har­hld.r fund)
total asset to debt ratio=TA /Dbt
propri­etary ratio= shareh­olders funds or propri­etors funds or equity/ TA
interest coverage ratio= profit before intere­st& tax/ interest on LTD
equity= share cpt+ reserv­es&su­rplus
TA=NCA+CA
equity= share cpt+ reserves &s­urplus
profit before interest and tax= profit after tax+ tax +interest.
equity­=NC­A+WC- NCL
CA= CI+ invt+TR +cash &cash equivl.nts+ ST loans &a­dvances
debt= LT.bor­rowing (deben­tur­es,­mortage loan,p­ublic dep) +LT.prov
NCA=pr­operty ,plant & eqp.+i­nta­ngible assets­+NCI+ LT loans& advances
 

activity/ turnover ratios

inventory turnover ratio=­crfo/ avg inventory
trade receiv­ables turnover ratio=­crfo/ ATR
trade payables turnover ratio= net credit purchases/ ATP
working capital turnover ratio= rfo/ WC
inventory turnover ratio=­crfo/ avg inventory
trade receiv­ables turnover ratio=­crfo/ ATR
trade payables turnover ratio= net credit purchases/ ATP
working capital turnover ratio= rfo/ WC
crfo=o­pening inventory+ net purchase+ direct expense -closing inventory
crfo= cost of material consumed +purchase of stock in trade +change in inventory of finished goods +direct exp.
crfo= rfo- GP

liquidity ratios

current ratio= CA/CL
liquid­/quick ratio= LAorQA/CL
wc=ca- cl
QA= CA- invent­ori­es-­prepaid exp.
 

profit­ability ratios

GP ratio= GP/rfo ×100
operating ratio= crfo+O­per­ating exp/ rfo ×100 OR operating cost/ rfo×100
operating profit ratio= operating profit / rfo×100
net profit ratio= NP after tax /rfo ×100
return on invst/cpt employed= profit before intere­st,tax &d­ivi­dend/ cpt employedOR operating cost/ rfo ×100
GP=rfo -cfro
operating expenses= employees benefit exp + deprec &a­mor­tis­ation exp +other exp
OP=np +non-o­per­ating exp -non-o­per­ating income
np after tax= gp + other income -indirect expenses -tax
capital employed= asset side: NCA +WC libility side: share cpt+re­serves and surplus +LTB +LTP
 
rfo= sales -sales return
percentage