Return on revenue shows profitability that compares net income of a company to its revenue. To calculate return on revenue open your income statement and divide net profit after tax with revenue

Continue reading# Category Archives: 4.2 Financial Ratios

# Calculating Capitalization Ratio in Excel

Capitalization ratio compares total borrowings to total capitalization. To calculate capitalization ratio open your balance sheet and divide long term debt with sum of long term debt and shareholder’s equity

Continue reading# Calculating Non-Current Assets to Net Worth in Excel

Non-current assets to net worth ratio shows the extent of company’s investments into non-current assets. To calculate non-current assets to net worth ratio open your balance sheet and divide non-current assets with the total equity

Continue reading# Calculating Fixed Assets Turnover Ratio in Excel

Fixed assets turnover ratio shows how efficiently a company uses its fixed assets to generate revenue. To calculate fixed assets turnover ratio open your income statement and balance sheet. Divide revenue from income statement with property, plant and equipment plus intangible assets from the balance sheet

Continue reading# Calculating Cash Ratio in Excel

Cash ratio is used to measure a company’s liquidity and how easily it is able to cover for its short-term liabilities. To calculate cash ratio open your balance sheet, divide cash and cash equivalents with the total of current liabilities

Continue reading# Calculating Return on Sales in Excel

Return on sales indicates how much net profit an entity makes after paying for variable costs of production such as wages, raw materials, advertising etc. To calculate return on sales open your income statement and divide profit before tax with revenue

Continue reading# Calculating Fixed Assets to Net Worth Ratio in Excel

Fixed assets to net worth ratio indicates the extent to which the owners’ cash is frozen in the form of fixed assets and the extent to which funds are available for the company’s operations. To calculate fixed assets to net worth ratio open your balance sheet and divide property, plant and equipment with total equity.

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