21 August 2011
Instead of asking that all ideal ratio better you ask for providing the ideal cma data of some concern.
Net Sales / TTA (Times): >1.5 PBT / TTA (%): >5 Operating Cost / Net Sales (%):90% Bank Finance / Current Assets (%):>25% Inventory+Receivables / Net Sales (Days): Depend upon nature of work
Current Ratio :+1.33 Acid Test Ratio : +2.0 Bank Finance to WCG Ratio
Debt Equity Ratio : +1.79 TOL / TNW : +1.79 Debt-Assets Ratio : Fixed Assets Coverage : Interest Coverage Ratio : +2
All below depend upon nature of business, so cant explain upon ideal ratio.
Inventory Turnover Period (Days) Average Collection Period (Days) Total Assets Turnover (Times) Average Credit Period (Days) - Creditors Bank Finance Turnover (Times) Current Assets Turnover (Times) Net Profit Margin after tax (%) Net Income to Assets Ratio (%) Return on Investment (%) [PBDIT/TTA] Return on Equity (%) Operating Profitability (%) Pre-Tax Profitability (%) PBT / TTA (%)