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प्रश्न
From the following information, calculate the following ratios:
- Debt-Equity Ratio
- Proprietary Ratio
- Working Capital Turnover Ratio
- Interest Coverage Ratio
Information:
| ₹ | |
| Equity Share Capital | 1,20,000 |
| 10% Preference Share Capital | 40,000 |
| General Reserve | 1,60,000 |
| Loan @ 15% interest | 2,00,000 |
| Revenue from Operations for the year | 5,60,000 |
| Tax paid during the year | 40,000 |
| Profit for the current year after interest and tax | 80,000 |
| Property, Plant and Equipment | 5,20,000 |
| Current Assets | 1,05,000 |
| Current Liabilities | 25,000 |
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उत्तर
(i)
Long Term Debts = Loan i.e. ₹ 2,00,000
Shareholder’s Funds = Equity Share Capital + Preference Share Capital + General Reserve + Profit for the Current year
= ₹ 1,20,000 + ₹ 40,000 + ₹ 1,60,000 + ₹ 80,000
= ₹ 4,00,000
Debt Equity Ratio = `"Long Term Debts"/"Shareholder’s Funds"`
= `(₹ 2,00,000)/(₹ 4,00,000)`
= 0.5 : 1
(ii)
Total Assets = ₹ 5,20,000 + ₹ 1,05,000
= ₹ 6,25,000
Proprietary Ratio = `"Shareholder’s Funds"/"Total Assets"`
= `(₹ 4,00,000)/(₹ 6,25,000)`
= 0.64 (64%)
(iii)
Working Capital = Current Assets − Current Liabilities
= ₹ 1,05,000 − ₹ 25,000
= ₹ 80,000
Net Revenue from Operations = ₹ 5,60,000
Working Capital Turnover Ratio = `"Net Revenue from Operations"/"Working Capital"`
= `(₹ 5,60,000)/(₹ 80,000)`
= 7 Times
(iv)
Fixed Interest Charges = 15% interest on Loan of ₹ 2,00,000
= ₹ 30,000
Net Profit before Interest and Tax = Profit after Interest and Tax + Interest + Tax
= ₹ 80,000 + ₹ 30,000 + ₹ 40,000
= ₹ 1,50,000
Interest Coverage Ratio = `"Net Profit before Interest and Income Tax"/"Fixed Interest Charges"`
= `(₹ 1,50,000)/(₹ 30,000)`
= 5 Times
