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current raiot, working capital ratio, liquidity ratio, capital adequacy ratio, net asset ratio
Prudential norms relate to income recognition,asset classification,provisioning of NPAs and capital adequacy ratios( capital to risk weighted asset ratio, CRAR)
Sales over Operating assets /which are long term +working capital/
Capital structure is basically how the firm chooses to finance its asset, or is the composition of its liabilities. A large way of measuring capital structure is a firms debt to equity ratio - the higher this ratio is, the more leveraged (the more indebted) the firm is.
1. Ratios for management a. Operating ratio b. Debtors turnover ration c. Stock turnover ratio d. Solvency ratio e. Return on capital 2. Ratios for creditors a. Current ratio b. Solvency ratio c. Fixed asset ratio d. Creditors turnover ratio 3. Ratios for share holders a. Yield ratio b. Proprietary ratio c. Dividend rate d. Capital gearing e. Return on capital fund.
Net Asset Ratio = Total Net Assets/Total Assets
How do I compute Asset Utilization ratio
How do I compute Asset Utilization ratio
1. Quick assets ratio formula Quick asset ratio = quick assets / current liabilities
Asset turnover is the ratio of a company's net sales to their total assets. It can be used to measure how efficiently the company is using its assets to increase sales: a high ratio indicates efficiency, whereas a low ratio indicates inefficiency. It can be calculated by dividing the amount of sales by the company's assets.
Current asset to total asset ratio shows how much is the proportion of current asset with comparison to total assets of business.
The fixed-asset turnover ratio can be limited in comparative analysis due to differences in industry practices, as capital intensity varies significantly across sectors; for example, manufacturing firms typically have higher fixed-asset investments than service-oriented businesses. Additionally, variations in accounting methods and asset valuation can distort the ratio, making it difficult to compare companies accurately. Furthermore, differences in company size and operational efficiency may also impact the ratio, leading to misleading conclusions if not considered.