Ratios
Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities
Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets)
Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue
Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed
Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity
Investment Ratios Earnings per Share (EPS) = Net Income – Dividends on preferred stock Average Outstanding Shares
Price/Earnings Ratio (P/E) = Market Price of Share/EPS
Aviation Industry Specific Ratios…
Available Seat Miles = Total No. of Seats Available for Transporting Passengers (ASM) x No. of Miles Flown during Period
Revenue Passenger Mile = No. of Revenue Paying Passengers x (RPM) No. of Miles Flown During Period
Load Factor
Quick/Acid Test Ratio = Current Assets less Stock/Current Liabilities
Dividend Yield = Annual Dividends per Share Price per Share
Liquidity Ratios
Current Ratio = Current Assets/ Current Liabilities
Quick Ratio = Current Assets – Inventories / Current Liabilities 12
5.2 Efficiency Ratios
Asset Turnover = Revenue/ Assets 12
5.3 Profitability Ratios
Net Profit Margin = Net Profit/ Net Revenue
ROCE = EBIT/ Total Assets – Current Liabilities 13
5.4 Solvency Ratios
Gearing Ratio = Total Liability/ Shareholders Equity 13
5.5 Investment Ratios
EPS = Net Income – Dividend on Preferred Stock/ Average Outstanding Shares 13
5.6 Industry Specific Ratios
Revenue per Passenger Mile = No of Revenue Paying Passengers x No of Miles Flown
Available Seat Miles = No of Miles Flown x Total No of Seats Available
Load Factor 14
Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets)
Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue
Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed
Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity
Investment Ratios Earnings per Share (EPS) = Net Income – Dividends on preferred stock Average Outstanding Shares
Price/Earnings Ratio (P/E) = Market Price of Share/EPS
Aviation Industry Specific Ratios…
Available Seat Miles = Total No. of Seats Available for Transporting Passengers (ASM) x No. of Miles Flown during Period
Revenue Passenger Mile = No. of Revenue Paying Passengers x (RPM) No. of Miles Flown During Period
Load Factor
Quick/Acid Test Ratio = Current Assets less Stock/Current Liabilities
Dividend Yield = Annual Dividends per Share Price per Share
Liquidity Ratios
Current Ratio = Current Assets/ Current Liabilities
Quick Ratio = Current Assets – Inventories / Current Liabilities 12
5.2 Efficiency Ratios
Asset Turnover = Revenue/ Assets 12
5.3 Profitability Ratios
Net Profit Margin = Net Profit/ Net Revenue
ROCE = EBIT/ Total Assets – Current Liabilities 13
5.4 Solvency Ratios
Gearing Ratio = Total Liability/ Shareholders Equity 13
5.5 Investment Ratios
EPS = Net Income – Dividend on Preferred Stock/ Average Outstanding Shares 13
5.6 Industry Specific Ratios
Revenue per Passenger Mile = No of Revenue Paying Passengers x No of Miles Flown
Available Seat Miles = No of Miles Flown x Total No of Seats Available
Load Factor 14