Ideal ratios for cma data

This query is : Resolved 

21 August 2011 Please tell me what is the ideal ratio for the following from bank point of view-

Net Sales / Total Tangible Assets (Times)
PBT / TTA (%)
Operating Cost / Net Sales (%)
Bank Finance / Current Assets (%)
Inventory+Receivables / Net Sales (Days)


Current Ratio
Acid Test Ratio
Bank Finance to WCG Ratio


Debt Equity Ratio
TOL / TNW
Debt-Assets Ratio
Fixed Assets Coverage
Interest Coverage 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 (%)


Retained Profit (%)
Raw Material Content (%)
Operating Cost / Sales (%)

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 (%)

23 August 2011 Thanks sir


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