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Computronix Ltd. has provided you with the following details. You are required to compute 

(i) Net Profit Ratio 

(ii) Return On Assets 

(iii) Return on Equity 

(iv) Dividend Payout Ratio

Net SalesRs. 12.5 crores
EBITRs. 5.6 crores
Net Income available to equity shareholdersRs. 3.2 crores
Equity DividendsRs. 1.2 crores
Total AssetsRs. 52.5 crores
Equity (2 crore shares outstanding)Rs. 21 crores

1 Answer

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(i) Net Profit Ratio = Net Profit / Net Sales 

= [(3.2 crores – 1.2 crores) / 12.5 crores] x 100 

= 16%

(ii) Return on Assets = Net Income available to equity shareholders / Total Assets 

= 3.2 crores / 52.5 crores 

= 0.06095 or 6.095%

(iii) Return on Equity = Net Income available to equity shareholders / Equity 

= 3.2 crores / 21 crores 

= 0.1524 or 15.24%

(iv) Dividend Payout Ratio = Equity Dividends / Net Income available to equity shareholders 

= 1.2 crores / 3.2 crores 

= 37.50%

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