Advertisements
Advertisements
प्रश्न
From the following information related to Naveen Ltd. calculate
(1) Return on Investment and
(2) Total Assets to Debt Ratio.
Information : Fixed Assets Rs 75,00,000; Current Assets Rs 40,00,000; Current Liabilities Rs 27,00,000; 12% Debentures Rs 80,00,000 and Net Profit before Interest, Tax and Dividend Rs 14,50,000.
उत्तर
1) Return on Investment
Return on Invest = `"Net Profit before Interest, Tax and Dividend"/"Capital Employed" xx 100`
Net Profit before Interest, Tax and Dividend = 14,50,000
Capital Employed = Fixed Assets + Current Assets – Current Liabilities
= (75,00,000 + 4,00,000 – 27,00,000)
= 88,00,000
Return on Investment = `1450000/8800000 xx 100`
= 16.48%
2) Total Assets to Debt to Ratio
Total Assets to Debt Ratio = `"Total Assets"/"Debt"`
Total Assets = Fixed Assets + Current Asset
= (75, 00,000 + 40, 00,000)
= 1, 15, 00,000
Debt = 80, 00,000
Total Assets to Debt Ratio = `11500000/8000000 = 1.4375`
APPEARS IN
संबंधित प्रश्न
Normally, what should be the maturity period for a short term investment from the date of its acquisition to be qualified as cash equivalents?
The fixed assets of a company were ₹ 35,00,000. Its current assets were ₹ 4,30,000 and current liabilities were ₹ 3,30,000. During the year ended 31-03-2019, the company earned net profit before tax ₹ 18,00,000. The tax rate was 30%. Calculate return on investment.
For the year 2022-23, the Return on Investment of Yolo Ltd. was 20%; its Capital Employed being ₹ 50,00,000.
- You are required to give the formula used by Yolo Ltd, to calculate the Return on Investment.
- You have been provided with two components for calculating Return on Investment. Calculate the missing third component.
