Abebe EQA Training document

Working capital ratio
[a] Working capital turn over
=Revenue /working capital
[Working capital turn over should be
between 8 and 12 per year]
[b] Net profit working capital
ratio=net profit before tax/working
capital
[Net profit to working capital ratio
should be between 40%-60%]
[c] Degree of fixed Asset
newness=Net depreciable fixed
asset/Total depreciable fixed asset
[The degree of fixed asset newness
should be between 40% to 60%]
Capital structure ratio
[a] Debt to equity ratio=Total liabilities
/owners equity
[The debt equity ratio should be lower
than 2.5
[b] Leverage =total asset /owners equity
[Leverage should be lower than 3.5]
EQA ,Amhara Building Works Construction Enterprise