Wednesday, October 20, 2010

Financial Ratios

Just to share to those who is interested to know the common Financial Ratios formulae used in assessing financial health of an organization.
Financial Ratios
a.       Liquidity Ratios
a.       Current Ratio = Current Assets/Current Liabilities
b.      Net Working Capital = Current Asset – Current Liabilities
c.       Quick Ratio = (Current Assets – Inventories)/Current Liabilities

b.      Activity Ratios
a.       Receivable Ratios
                                                               i.      Account Receivable Ratios Turnover = Sales/Account Receivables
                                                             ii.      Average Collection Period = Account Receivables/(Credit Sales/Period)

b.      Inventory Turnover Ratios
                                                               i.      Inventory Turnover = Sales/Inventory
                                                             ii.      Days Sales Inventory = Inventory/(COGS/Period)
                                                            iii.      Total Assets Turnover = Sales/Total Assets
                                                           iv.      Fixed Assets Turnover = Sales/Fixed Assets

c.       Solvency Ratios
a.       Debt Ratio = Total Debt (CL + LTD)/Total Assets
b.      Debt to Equity Ratio = Total Debt (CL + LTD)/Equity
c.       Time Interest Earned = EBIT/Interest
d.      Long Term Debt to Equity = LTD/Equity

d.      Profitability Ratios
a.       Gross Profit Margin = Gross Profit/Sales
b.      Net Profit Margin = Net Profit/Sales
c.       Operating Profit Margin = EBIT/Sales
d.      Return on Assets = Net Income/Total Assets
e.      Return on Investments =Net Income/Equity
f.        Return on Equity = Net Income/Equity

e.      Ownership Ratios
a.       Earnings Per Share = Net Income / No. of Shares
b.      Dividend Per Share = Dividend Payout/No. of Shares
c.       Dividend Payout Ratios = Dividend Per Share/Earning Per Share
d.      Price Earning = Market Price/Earnings Per Share
e.      Book Value Per Share = Equity/No. of Shares
f.        Market Capitalization = Market Price X No. of Shares
g.       Dividend Yield = Dividend Per Share/Market Price Per Share
 See for more update/news later..

It's 20.10.2010

Wow, today I'm celebrating my coolest day, one in a life time, memorable date, i.e. my birthday.

Last week, people are vowing to celebrate special occassions such as registering marriage, delivering baby, etc. on 10.10.2010. Not to forget the most tragic accident for the year at PLUS highway not to far to Simpang Ampat, Melaka exit.

It is time for me recheck my current development in terms of Ibadah, health and wealth.

To all wishers, thanks for your greetings and may our friendship last forever.

Thank you.

Monday, October 11, 2010

Coding used in Airline Industry

I have attended a meeting with officials from one of local airline industry player recently. They have shared me the common coding used in the industry. For instance, if the aircraft number is MH1234, then the coding is Mike Hotel 1234.
The rest of the listing as follows:
A             -              Alpha
B             -              Beta
C             -              Charlie
D             -              Delta
E              -              Echo
F              -              Foxtrot
G             -              Golf
H             -              Hotel
I               -              India
J              -              Juliet
K             -              Kilo
L              -              Lima
M            -              Mike
N             -              November
O             -              Oscar
P             -              Papa
Q             -              Quebec
R             -              Romeo
S              -              Sierra
T              -              Tango
U             -              Uniform
V             -              Victor
W            -              Whiskey
X             -              X-Ray
Y              -              Yankee
Z              -              Zulu