RATIO ANALYSIS
Q1. From the following information, calculate (up to two decimal places):
(i) Liquid Ratio
(ii) Current Ratio
(iii) Proprietary Ratio
(iv) Working Capital Turnover Ratio
(v) Gross Profit Ratio
(vi) Operating Ratio
(vii) Net Profit Ratio
Particular
Cost of revenue from operations
Operating Expenses
Gross Revenue from Operations
Revenue from Operations Returns
₹
6,00,000
50,000
8,00,000
10,000
Total Current Assets
3,00,000
Total Current Liabilities
1,00,000
Total Assets
7,00,000
Closing Inventory
30,000
Prepaid Insurance
5,000
Share Capital
Reserves and surplus
5,60,000
34,000
Q2. From the following information calculate (up to two decimal places) :
(1) Trade Receivables Turnover Ratio
(2) Operating Profit Ratio
(3) Net Profit Ratio
Particular
₹
Cash Revenue from Operations
1,00,000
Net Purchases
2,97,000
Credit Revenue from Operations
3,00,000
Closing Debtors
80,000
Closing Bills Receivables
60,000
Carriage Inward
3,000
Finance Cost
5,000
Administrative Expenses
40,000
Profit on sale of fixed asset
10,000
Discount Received
7,000
Q3. From the information given below, calculate (upto two decimal places):
(i) Operating Ratio.
(ii) Quick Ratio.
(iii) Debt to Equity Ratio.
(iv) Proprietary Ratio.
(v) Working Capital Turnover Ratio.
Particulars
Net revenue from operations
Cost of revenue from operations
₹
12,00,000
9,00,000
Operating expenses
15,000
Inventory
20,000
Other Current Assets
Current Liabilities
Paid up Share Capital
Statement of Profit and Loss (Dr.)
Total Debt
2,00,000
75,000
4,00,000
47,500
2,50,000
Q4. From the following information calculate the Return on Investment:
Net Profit (after Tax) Ratio
20%
Tax Rate
40%
₹
Revenue from Operations
12,00,000
Property, Plant and Equipment
7,00,000
Non-Current Investments (Trade)
1,00,000
Non-Current Investments (Non-Trade)
50,000
Current Assets
1,80,000
Total Debt
5,00,000
10% Debentures
4,00,000
Trade Payables
50,000
Q5. From the following information calculate the following ratios (up to two decimal
places) :
(i) Earning Per Share
(ii) Price Earning Ratio
(iii) Return on Investments
(iv) Working Capital turnover Ratio
Particulars
₹
Net profit after Interest and Tax
2,40,000
Tax
1,60,000
Property, Plant and Equipment
10,00,000
Non-current Investments (Non-Trade)
1,00,000
Equity Share Capital (face value 10 per share)
5,00,000
15% Preference Share Capital
1,00,000
Reserves and Surplus (including surplus of the year
under consideration)
2,00,000
10% Debentures
4,00,000
Revenue from Operations
10,00,000
Working Capital
1,00,000
Note: The market value of an equity share is ₹40.
Q6. From the following Statement of Profit and Loss of Swatantra Ltd. for the year 2021-22,
calculate any three ratios (up-to two decimal places):
(i) Gross Profit Ratio
(ii) Net Profit Ratio
(iii) Operating Profit Ratio
(iv) Inventory Turnover Ratio
Statement of Profit and Loss of Swatantra Ltd.
For the year ending 31st March, 2022
Particulars
Note No.
Revenue from operations
₹
5,00,000
Other Income (Gain on Sale of Machinery)
40,000
Total Income :
5,40,000
Expenses:
Purchases
2,50,000
Changes in inventories
1
(10,000)
Employee Benefit Expenses
2
26,000
Depreciation
14,000
Finance Cost (Interest on Debentures)
Other Expenses
30,000
3
20,000
Total Expenses
3,30,000
Profit before Tax
2,10,000
Provision for Tax
(84,000)
Profit after Tax
1,26,000
Notes to Accounts:
Particulars
₹
1. Changes in Inventories
Opening Inventory
40,000
Closing Inventory
50,000
2. Employee Benefit Expenses
Wages
16,000
Salaries
10,000
3. Other expenses
Carriage inward
Loss on sale of Furniture
8,000
12,000