+- Accountancy Forum (https://www.accountancy.com.pk/forum)
+-- Forum: The Profession (https://www.accountancy.com.pk/forum/forum-the-profession)
+--- Forum: Students (https://www.accountancy.com.pk/forum/forum-students)
+--- Thread: Formulae of Financial Ratios Required (/thread-formulae-of-financial-ratios-required)
Formulae of Financial Ratios Required - AslamK - 05-21-2009
All;
Please advise that how to calculate the following Financial Leverage Ratio;
Current Worth / Net worth Ratio
Total Capitalization Ratio
Fixed Ratio / Equity Ratio
thanks
- irfan kazim - 05-28-2009
Net worth ratio. Profit after interest and tax and after preffered dividend
/ Shareholder's fund(equity capital,surplus,retained earning,reserves like that)
Net capitalization ratio means capital employeed i think. Formula is profit before interest and tax less other income/ capital employeed(working capital+fixed assets )or internal + external capital like capital+ debt.
Fixed asset to equity ratio. fixed assets/ total equity like above.