NISM Series XV : Research Analyst Certification Exam Notes
Page 46 Of 62
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Leverage Ratios ? D/ E Ratio = Long Term Debt / Net-worth
Interest Coverage Ratio = EBIT / Interest Expense
Liquidity Ratios ? Current Ratio = Current Assets / Current Liabilities
Quick Ratio = (Current Assets - Inventories) / current liabilities
Efficiency Ratios ? Accounts Receivable Turnover: This ratio indicates how fast company converts its sale in to cash. Higher the ratio, better the firm, as it means that very small portion of its revenues are in the form of credit
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