Leverage or Capital Structure Ratios

Fixed Assets to Current Assets Ratio = Fixed Assets / Current Assets

Fixed Assets Ratio =Fixed Assets / Long – Term Funds

Debt – Equity Ratio = Debt / Equity

Proprietary Ratio = Shareholder’s Fund /Total Assets

Reserves to Equity Capital Ratio = Revenue Reserve / Equity Capital

Fixed Assets to Net worth Ratio = Fixed Assets / Net worth

Capital Gearing Ratio = Fixed Interest Bearing Securities / Equity Share Capital

Current Assets to Net worth Ratio = Current Assets / Net worth

Current Liabilities to Net worth Ratio= Current Liabilities / Net worth

Links of Next Finance Topics:-

• Introduction to accounting and branches of accounting
• Preparation of final accounts
• Introduction of fund flow statement
• Introduction cash flow statement
• Ratio analysis significance of ratio analysis
• Advantages of ratio analysis
• Limitation of ratio analysis
• Classification of ratios
• Liquidity short term solvency ratios
• Long term solvency ratios
• Profitability ratios
• Activity or turnover ratios

Links of Next Finance Topics:-

• Test questions in ratio analysis
• Ratio analysis problems and solutions
• Learning objectives and chapter outline in assignment model
• Minimization problems
• Learning objectives the transportation problems
• Special case of traveling sales man problem
• Replacement theory learning objectives and chapter outline
• Learning objectives and chapter outline for waiting line queuing theory