RATIO's Flashcards
(23 cards)
components of patrimony
assets - liabilities = equity
working capital
= E + NCL - NCA
or
= CA - CL
- 0 is neutral, the higher the better
current ratio
= CA/CL
- best = 2
Return on Assets (ROA) or Return on Investments (ROI)
= operation income + financial revenues (EBIT) / total assets
availability ratio
= (CA-inventory-exigible)/CL
- best = 1
acid test
= (CA-inventory)/CL
- best = 2, atleast .08
total solvency
= total assets/total liabilities
- best=2, atleast above 1, bad below 1
Return on Equity (ROE) after taxes
= profit and loss before or after taxes / equity (bruto or netto)
=EBT / equity
- the higher the better, < 0 is losing funds
Return on Assets
= EBIT/operation revenue x operation revenue/total assets
ROE (ROE) before taxes
= EBT/EBIT x EBIT/assets x asset/equity
- the higher the better
financial leverage
= ROE (BT)/ROA
= EBT/equity x EBIT/assets
- the higher the beter, 1 = neutral
total solvency (TS)
= total assets / total liability
= NCA+CA / CL+NCL
= L+E / A-E
atleast > 1.5
Firmness/consistency ratio
= NCA / NCL
- optimal value = 2
Capitalization growth ratio
= reserves emerge in period / total reserves
fixed assets stability/coverage ratio
= NCL + equity / NCA
- optimal value = 1
Debt to equity ratio
= CL + NCL / equity
- optimal value = 1
Debt
= CL/equity + NCL/equity
Financial autonomy ratio (FAR)
= equity / total liabilities
= equity / CL + NCL
soundness ratio
= equity / NCA
- optimal value = 0.5
Bank debt ratio
= bank debts / equity
interest coverage ratio
=interest financial expense / EBIT
max value is < 1
optimal is <0.3
Capitalization of the period ratio
= new reserves / earnings after taxes
max = 1, min = 0
Level of capitalization ratio
= total reserves / equity
- optimal value < 1
