Financial management Notes in Hindi CS Executive - CSHindinotes

CS EXECUTIVE FINANCIAL MANAGEMENT
(iv) Operating Ratio = 100
Operating Cost = Cost of Goods Sold + Operating Expenses
(v) Return on Capital Employed (Return on Investment) =
100
(vi) Return on Net Worth = 100
Net Worth = E/S Capital + Pref. Share Capital + Reserve and Surplus ‐
Misc. Expenditure
(vii) Return on Equity Share Capital =
100
(viii) Return on Total Assets = 100
3. Activity Ratio: ‐
(i) Stock Turnover Ratio =
Cost of Goods Sold = Sales ‐ Gross Profit
OR
C.O.G.S. = Opening Stock + Purchase ‐ Closing Stock
Average Stock =
;fn Opening Stock ugha fn;k x;k gks rks
Average Stock = Opening Stock
Stock Velocity [Average Storage Period] =
(ii) Debtors Turnover Ratio =
Debtors Velocity [Average Collection Period] =
OR
= Avg. (Debtors + B/R)
COMPILED BY MS. SHWETA AGARWAL CA, CS Page 5