Liquidity Ratios

1) Current ratio
The current ratio is a financial ratio that measures whether or not a firm has enough resources to pay its
debts over the next 12 months. The formula used is Current Assets/Current Liabilities.

1.66
1.31

1.78

1.81

1.45

1.47

Company

Industry

2) Quick Ratio
The quick ratio is a measure of how well a company can meet its short-term financial liabilities. It can be
calculated as follows:
(Cash + Marketable Securities + Accounts Receivable) / Current Liabilities
Company
1.49

1.33

3) Inventory to working capital

1.51

Inventory to working capital ratio, defined as a method to show what portion of a company's inventories is
financed from its available cash, is essential to businesses, which hold inventory and survive on cash
supplies. In general, the lower the ratio, the higher the liquidity of a company is. The formula used is
Inventory/(Current assets-Current Liabilities).
0.17

0.16
0.14

Activity Ratios
1) Inventory turnover ratio

The inventory turnover ratio is an efficiency ratio that shows how effectively inventory is managed by
comparing cost of goods sold with average inventory for a period. This measures how many times
average inventory is "turned" or sold during a period. The formula used is Cost of goods sold/Average
Stock.
27.18

11.65

Company

28.25

27.47

10.17

9.83

Industry

2) Inventory holding period

The formula used is (1/Stock Turnover Ratio)*365.
35.88

37.12

12.92

13.29

31.33

13.43

Compoany

Industry

3) Debtor turnover ratio

Accounts receivable turnover ratio measures how many times a business can collect its average accounts
receivable during the year.

3.27

3.26

2.53

2.59

Company

3.08
2.58

Industry

4) Debtors collection period

In accounting the term Debtor Collection Period indicates the average time taken to collect trade debts. In
other words, a reducing period of time is an indicator of increasing efficiency. The formula used is
(1/Debtors Turnover Ratio)*365.

144.27

140.93

111.70

112.13

Company

141.47
118.40

Industry

5) Creditors turnover ratio

A short-term liquidity measure used to quantify the rate at which a company pays off its suppliers. The
formula used is Credit Purchases/Sundry Creditors.

0.82
0.74
0.67

6) Creditors payment period

Creditors Payment Period is a term that indicates the time (in days) during which creditors remain
outstanding.
547.39
492.44
446.77

7) Operating cycle days

The formula used for this is Debtors collection Period+ Inventory holding period- creditors payment
period.

-303.74
-344.43
-391.87

8) Asset turnover ratio

The asset turnover ratio is a measure of a company's ability to use its assets to generate sales or
revenue, and is a calculation of the amount of sales or revenue generated per dollar of assets. The
formula for the ratio is as follows: Sales Total Assets.

0.72

0.68

0.66

Profitability ratios
1) Gross profit margin
Gross profit margin is a profitability ratio that measures how much of every rupee of revenues is left over
after paying cost of goods sold (COGS).

The formula used is: (Sales- Cost of sales)/ Sales* 100

24.50
24.13

24.00
23.52

23.50
23.00
22.71
22.50
22.00

2) Net profit margin

Net profit margin is the percentage of revenue remaining after all operating expenses; interest, taxes and
preferred stock dividends have been deducted from a company's total revenue.
The formula used is: (Earnings after tax/Sales)* 100
7.05
5.73

5.40

3) Operating ratio
The operating ratio is a financial term defined as a company's operating expenses as a percentage of
revenue. Thus the formula used is (Operating Cost/Sales)*100.

84.51

82.21
81.58

4) Operating profit ratio

Operating margin is a margin ratio used to measure a company's pricing strategy and operating efficiency.
Operating margin is a measurement of what proportion of a company's revenue is left over after paying
for variable costs of production such as wages, raw materials, etc. Thus the formula used is (Operating
Profit/Sales)*100.
84.51

82.21
81.58

Solvency ratios
1) Debt to equity

2) Debt to total assets

The debt to total assets ratio is an indicator of financial leverage. It tells you the percentage of total assets
that were financed by creditors, liabilities, debt. (Total long term liabilities/ Total Assets)*100.
64.11

64.16

60.34

3) Proprietary ratio
The proprietary ratio (also known as the equity ratio) is the proportion of shareholders' equity to total
assets, and as such provides a rough estimate of the amount of capitalization currently used to support a
business. The formula used is (proprietors funds/total assets)*100.

Company
39.66

35.89

35.84

Asset Turnover Ratio

1.26

Company

Debt To Equity Ratio

Company

Industry
0.35

0.34

0.34

0.32
0.30