# Financial Ratio Analysis

832 Words4 Pages
Financial Ratio Analysis RATIO IS A TYPE OF ANALYSIS THAT HELPS YOU BETTER UNDERSTAND AND GUIDE THE FINANCIAL AFFAIRS YOUR BUSINESS. A RATIO IS A MATHEMATICAL EXPRESSION AND IS COMPUTED USING INFORMATION FROM THE BALANCE SHEET AND/OR INCOME STATEMENT. Current Ratio !"##\$%& !"#\$% = BOSCH INDIA LIMITED = !".!"#\$.!" !".!"#\$.!" !"##\$%& !""#\$" !"##\$%& !"#\$"%"&"'( FEDERAL MOGUL GOETZE INDIA LTD = !".!"#.!" !".!"#.!" =2.02 = 1.36 Acid-Test / Quick Ratio Quick Ratio = !"##\$%& !"#\$"%"&"'( Quick Assets = Total Current Assets – Inventories – Prepaid Expenses BOSCH INDIA LIMITED Quick Assets = 4236.30 – 1183.06 – 0 = 3053.24 3053.24 Quick Ratio = 2095.40 Quick Ratio = 1.45 FEDERAL MOGUL GOETZE LIMITED Quick Assets = 372.58 – 139.20 - 0 = 233.38 233.38 Quick Ratio = 227.71 Quick Ratio = 0.85 !"#\$% !""#\$" Financial Ratio Analysis – Compiled By: Arpit Kapoor 1 Turnover Ratio Inventory Turnover Ratios !"#\$"%&'( !"#\$%&'# !"#\$% = BOSCH INDIA LIMITED !"#\$"%&'( !"#\$%&'# !"#\$% = Inventory Turnover ratio = 101.86 6231.92 61.18 !"#\$ !" !""#\$ !"#\$ !"#\$%&# !"#\$"%&'( FEDERAL MOGUL GOETZE INDIA LTD !"#\$"%&'( !"#\$%&'# !"#\$% = Inventory Turnover ratio = 8.14 997.31 122.42 Debtors Turnover Ratio !"#\$%&!! !"#\$%&'# !"#\$% = !"# !"#\$%& !"#\$% !"#\$%&# !"#\$%&' !"#\$%&# !"##\$%&'"( !"#\$%& = BOSCH INDIA LIMITED 7997.19 !"#\$%&! ! !"#\$%&'# !"#\$% = 835.09 Debtor’s Turnover Ratio = 9.57 12 !"#\$%&# !"##\$%&'"( !"#\$%& = 9.57 Average Collection Period = 1.25 !"#\$%& !"#\$ !" !"#\$ !"#\$%!! ! !"#\$%&'# !"#\$% FEDERAL MOGUL GOETZE INDIA LTD 1119.06 !"#\$%&! ! !"#\$%&'# !"#\$% = 135.06 Debtor’s Turnover Ratio = 8.28 12 !"#\$%&# !"##\$%&'"( !"#\$%& = 8.28 Average Collection Period = 1.44 Financial Ratio Analysis – Compiled By: Arpit Kapoor 2 Defensive Interval Ratio !"#"\$%&'" !"#\$%&'( !"#\$% = !"#\$"% !""#\$" (!"#\$% !""#\$") !"#\$%&'%( !"#\$%