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6 views

Ratio

Uploaded by

Mohammad Tanvir Hossain
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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Risk

Sl. No. Ratio Measure Comment


Level
1 Gross profit margin 8.97% Standard for the industry M
2 Net profit margin 2.53% Standard for the industry M

Lower than the industry average. Capital


Return on capital
3 6.29% components need to be analyzed and revenue H
employed
& expenditure need to be carefully checked.

Return on total equity Lower than the industry average. Equity


4 or shareholders’ 6.95% components need to be analyzed and revenue H
investment ratio & expenditure need to be carefully checked.

Lower than the industry average. Need to


Cost of sales check the components of cost of sales. All the
5 91.03% H
percentage components need to be inventoried to confirm
that all are included.
Operating cost
6 1.87% Standard for the industry H
percentage
7 Current ratio 0.99 times Standard for the industry L
8 Quick ratio 0.51 times Standard for the industry L
Lower than the industry average. Timely
9 Interest coverage ratio 1.82 times M
payment of interest seems to be problematic.

Not much efficient in utilizing assets for


generating sales. Need to review revenue
10 Asset turnover ratio 1.11 times H
generation and authorized asset utilization
process.
Not much efficient in utilizing assets for
Net asset turnover generating sales. Need to review revenue
11 0.07 times H
ratio generation and authorized asset utilization
process.
Inventory turnover
12 2.77 times Conversion of inventory into sales is good. L
ratio
Receivable turnover The receivable collection is moderately good.
13 29.96 times L
ratio But need to check further.
The receivable collection is moderately good.
Receivable collection
14 12.18 Days Need check to why it is not with the range of M
period
30-90 days
H – High risk
M – Medium risk
L – Low risk

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