Here are the Key ratios which needs analysis when looking at the Balance Sheet , P&L of a company when trying to get a perspective on the Working Capital efficiency of a company and it’s competitors.
Current Asset / Total Asset | % |
Current Asset/ Sales | % |
Debt/Asset | Times |
quick ratio or acid-test | Times |
Turnover of Cash and Sec | Times |
Inventory Turnover (Sales/Invntry) | Times |
Days Sales in Inventory (DSI) | Days |
Days sales outstanding (DSO) | Days |
Days payable outstanding (DPO) | Days |
Gross operating cycle(DSI+DSO) | Days |
Net operating cycle (ccc) | Days |
FA turnover (Sales/FA) | Times |
Total Assets Turnover (Sales/Asset) | Times |
Profit Margin | Percent |
ROI | Percent |
Leverage (Total Asset/Equity) | Times |
ROE | Percent |
More later…. Other information on Financial Analysis