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• Inventory Turnover: Â
Cost of Goods Sold Ă· Inventory
Measures how many times a company’s inventory is sold and replaced over a period.
• Asset Turnover:
Sales Ă· Total Assets
Measures a firm’s efficiency at using its assets in generating sales or revenue.
• Current Ratio:
Current Assets Ă· Current Liabilities
Measures a company’s ability to pay short-term obligations.
• Quick Ratio:
(Current Assets – Inventory) ÷ Current
Another liquidity ratio, but excludes inventory as it is less liquid.
• Interest Coverage Ratio:
EBIT Ă· Interest Expenses
Measures how easily a company can pay interest expenses on outstanding debt.
• Return on Assets (ROA):
Net Income Ă· Total Assets
Measures how efficiently a company uses its assets to generate income.
• Return on Equity (ROE):
Net Income ÷ Shareholder’s Equity
Measures how efficiently a company uses its equity to generate income.
• Gross Margin:
Gross Profit Ă· Revenue
Measures how much out of every dollar of sales a company keeps as gross profit.
• Net Profit Margin:
Net Income Ă· Revenue
Measures how much out of every dollar of sales a company keeps as earnings.
• Dividend Payout Ratio:
Dividends Ă· Net Income
Measures what proportion of earnings are paid to shareholders as dividends.
• Dividend Yield:
Annual Dividends per Share Ă· Price per Share
Shows how much a company returns in dividends each year relative to its share price.
• Debt to Equity Ratio:
Total Debt Ă· Total Equity
A leverage ratio that compares a company’s total debt with its total equity.
Market Value Ratios
• Earnings Per Share (EPS):
Net Income  ÷  Shares Outstanding
Measures the profit allocated to each share of common stock.
• Price to Earnings Ratio (P/E):
Share Price Ă· Earnings per Share
Measures the price you pay for each dollar of earnings.
• Price to Sales (P/S):
Share Price Ă· Sales Per Share
Compares a company’s market value to its sales.
Investors use earnings before interest, taxes, and amortisation (EBITA) as a gauge of a company’s profitability. Comparing one business to another in the same industry might be useful. It occasionally can also offer a more realistic assessment of a company’s worth.
Rajput Jain and Associates : Service OfferingsÂ
We offer a comprehensive suite of professional accounting and compliance services, including:
Accounting & Bookkeeping
Day-to-Day Bookkeeping and Accounting
Payment, Receipt & Journal Entry Recording
Bank Reconciliation Statements (BRS)
Vendor and Customer Ledger Reconciliation
Sales, Purchases & Inventory
B2B/B2C Sales & Purchases with E-Invoicing
Debit/Credit Notes & Stock Transfers
Bill of Materials (BOM) Management
Stock Register Maintenance & Statements
Statutory Compliance
GST Return Filing (Monthly)
TDS Return Preparation & Filing
ESI & EPF Monthly Payments
Payroll & HR Support
Salary Sheet Preparation (Excel-based)
Vendor Registration Documentation Support
Accounts Management
Accounts Payable (AP) Management
Accounts Receivable (AR) Monitoring
Software Expertise : We are proficient in handling various accounting and ERP platforms, including Tally | Busy | SAP | Zoho Books | QuickBooks | Finncub | Enjoy
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