The following Ratios are covered in CMA Report and Data for helping Bank to issue Loans:

Operating Profit Ratio:

Operating Profit means profit derived by business from main core business activities without including any other non operating profit like Interest Income, Capital Gain Income, Sale of Business Assets.

Profit before Tax Ratio:

The profit before Tax means the Net profit before Income Tax divided by Net Sales.

Current Ratio:

The current ratio means the current assets divided by current Liabilities. The current assets are assets which are recoverable is period of 1 Year like Stock, Sales Receivables, Bank Balances etc. The Current Liabilities means assets which are payable in 1 years like Purchase Payables, Expense Payable, Loan Paayable etc

The minimum current ratio accepted by Bank is 1.5 . For Example

• Current Assets Rs.150000
• Current Liabilties Rs. 100000
• The current Ratio in CMA Report and Data will be 1.5.

Total Loan to Net worth Ratio:

The loan to Net worth ratio is calculated in CMA Report and Data by dividing Total loan amount with total net worth of Business.

The net worth means the current amount holed by founders in Business.

PBDIT & Interest Ratio:

The PBDIT means profit before deducting deprecation , Interest Expense and Tax. In this, Interest amount is divided by PBDIT to calculate how bigger is business profit than Interest.

Debt to Liquid Fund Ratio:

This ratio is calculated in CMA Report and Data by dividing Debt payable during the year with Liquid Fund available during the year. This ratio is calculated to check whether the business will have enough Cash fund to repay the Bank debt during the year.

The minimum Debt to Liquid fund ratio is 3 accepted by Banks.

Inventory to Purchase Ratio:

The inventory to purchase ratio is calculated to check the how many days stock is maintained by business on annual Basis. This ratio is calculated by dividing the Closing Stock with Purchase of whole year.