Calculating Ratios and other fundamentals from ARs

Stock Analysis & Valuation
1

Hello everybody,

I have just started studying Annual reports and interested to know how various ratios are calculated from ARs.

                                                **RATIOS**

Current Ratio
Quick Ratio
Liquid Ratio

Debt-Equity Ratio
Debt to Capital Employed Ratio
Proprietary Ratio
Total Assets to Debt Ratio
Interest Coverage Ratio

Inventory Turnover Ratio
Trade Payables Turnover ratio

Gross profit ratio
Operating ratio
Operating profit ratio
Net profit ratio
Return on Investment (ROI)
Return on Capital Employed (ROCE)
Return on Net Worth (RONW)

Book value per share
Dividend payout ratio
Asset Turnover Ratio

Return on Equity

Debt-to-Assets Ratio
Debt-to-Capital Ratio
Debt-to-EBITDA Ratio
Asset-to-Equity Ratio

                                       **OTHER FUNDAMENTALS**

WACC

The financial statements in 3 separate tabs in excel…this might be helpful in calculating the ratios Reliance.xlsx (19.9 KB)

I have tried searching for the values of these ratios online,but different websites provide different values. Please help me calculate the ratios PROPERLY.
Thanks to all VP Members

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2

Hey Ricky, There are various books available where various ratio’s are explained in detail. There may be some books suggested in this valuable forum itself. You can try reading them rather than try online (which can be fake figures). I am not aware of any reliable, easy and quick solution rather than books themselves.

3

Hi Ricky, there are few YouTube channels like Angel Broking…which tell you the basics like definitions & method bof calculating these ratios from ARs. I found these videos useful.

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4

Dear Forum, I am unable to understand how ROE is relevant if I am buying the stock, I think EBIT / EV is better metric to calculate the return, I am missing anything and why everyone calculate ROE for listed companies where CMP is very far away from BVPS

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