Current Ratio

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1 Ratio Analysis Assignment for Colgate Palmolive 1. Current Ratio: Current Ratio= Current assets Current liabilities Current Ratio= 7 , 026 , 946 1,979,991 =3.54 For every Rs. 1 Colgate has Rs. 3.54 2. Quick Ratio / Acid-Test Ratio: Quick Ratio= Quick assets Currentliabilities Quick Ratio= 6,901,226 1,979,991 =3.4 For every Rs. 1 Colgate has Rs. 3.4 3. Total asset Turnover: Total A sset Turnover= Netaverage Sales Totalaverage assets Total Asset Turnover= 21,746,763 19,411,126 =2.24 For every Rs. 1 asset Colgate has generated Rs. 2.24 in 2014 4. Fixed assets Turnover: ¿ Asset Turnover= Netaverage Sales ¿ averageassets Total Asset Turnover= 21,746,763 3 , 166 , 125 =6.8 5. Inventory Turnover: Inventory Turnover= Netaverage Sales Inventory ( average )

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Understanding Current Ratio

Transcript of Current Ratio

Ratio Analysis Assignment for Colgate Palmolive

Ratio Analysis Assignment for Colgate Palmolive31. Current Ratio:

For every Rs. 1 Colgate has Rs. 3.542. Quick Ratio / Acid-Test Ratio:

For every Rs. 1 Colgate has Rs. 3.43. Total asset Turnover:

For every Rs. 1 asset Colgate has generated Rs. 2.24 in 20144. Fixed assets Turnover:

5. Inventory Turnover:

6. Receivable Turnover:

For every Rs. 1 investment Colgate has generated Rs. 36.6 sales in 20147. Debt Ratio:

8. Equity Ratio:

9. Times Interest Earned (TIE):

10. Profit Margin:

11. Gross Margin:

12. Return on Total Assets (RTA):

13. Basic Earning per share (EPS):

14. Price per earning (P/E):