j60 Ratio Gross profit 5,00,000 -x100 = 50 per cent -x100= Sales 10,00,000 = (in) Overall Profitability Ratio: Operating profit 4,00.000 x100= x 100 = 80 per cent Capital employed 5,00,000 (iii) Current Ratio: 60 Current Assets 4,00.000 Current Liabilities 5,00,000 = 2.67 (iv) Debt-Equity Ratio: External Equities 3.50,000 =1.17 Internal Equities 3,00,000 Or Total Long = term Debt 2,00,000 = 0.40 Total Long = term Funds 5,00,000 Or Total Long-term Debt 2.00,000 = 0.67 Total Long-term Funds 3,00,000 (v) Stock Turnover Ratio: (a) As regards average total inventory Cost of goods sold 5,00,000 -2.5 Average inventory* 2,00,000 (" of raw material as well as finished goods). (b) As regards average inventory of raw materials: Cost of goods sold 5,00,000 -5 Average inventory of finished goods 1,00,000 (e) As regards average inventory of finished goods: Cost of goods sold 5,00,000 Average inventory of finished goods 1,00,000 5 (vi) Liquidity Ratio: Liquid Assets 1,50,000 Current Liabilities 1,50,000 Illustration 11.22. The Balance Sheet of Y Ltd, stood as follows as on: (in lakhs) 31.3.04 Liabilities Capital Reserves Loans Creditors and Other Current Liabilities 31.3.05 250 116 100 31.3.04 250 100 120 Particulars Fixed Assets Less: Depreciation 129 25 Investments Stock Debtors Cash/Bank Other Current Assets Misc. Expenditure 31.3.05 400 140 260 40 120 20 20 25 60 595 300 100 200 30 100 50 20 25 70 495 595 495 You are given the following information for the year 2004-05: Sales 600 PBIT 150 Interest 24 Provision for tax 60 Proposed dividend 50 All the figures given above are rupees in lakhs. From the above particulars calculate for the year 2004-05: (a) Return on Capital Employed Ratio. (b) Stock Turnover Ratio. (c) Return on Net Worth Ratio (d) Current Ratio. (e) Proprietary Ratio