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Accounting Ratios 3.17

Operating Cost
Solution: Operating Ratio =  100
Revenue from Operations
` 31,00,000
=  100 = 62%.
` 50,00,000
Note: Operating Cost = Purchases of Stock-in-Trade + Change in Inventories of Stock-in-Trade
+ Employee Benefit Expenses + Depreciation + Office Expenses
+ Selling and Distribution Expenses
= ` 27,00,000 – ` 2,00,000 + ` 3,10,000 + ` 90,000 + ` 1,20,000 + ` 80,000
= ` 31,00,000.
Total Assets to Debt Ratio
Illustration 12.
Following is the Balance Sheet of Hyatt Ltd. as at 31st March, 2024. You are required to
calculate Total Assets to Debt Ratio for the two years.

BALANCE SHEET as at 31st March, 2024
Particulars Note 31st March, 31st March,
No. 2024 (`) 2023 (`)

I. EQUITY AND LIABILITIES
1. Shareholders’ Funds
(a) Share Capital 1 10,00,000 7,50,000
(b) Reserves and Surplus 3,00,000 2,50,000
2. Non-Current Liabilities
(a) Long-term Borrowings 24,00,000 8,00,000
(b) Long-term Provisions 2,00,000 1,00,000
3. Current Liabilities
(a) Short-term Borrowings 2,00,000 1,50,000
(b) Short-term Provisions 1,00,000 ...
Total 42,00,000 21,00,000
II. ASSETS
1. Non-Current Assets
Property, Plant and Equipment and Intangible Assets:
—Property, Plant and Equipment 20,00,000 11,50,000
2. Current Assets
(a) Inventories 9,00,000 4,00,000
(b) Trade Receivables 11,50,000 4,50,000
(c) Cash and Cash Equivalents 1,50,000 1,00,000
Total 42,00,000 21,00,000

Note to Accounts
Particulars 31st March, 31st March,
2024 (`) 2023 (`)
1. Share Capital
Equity Share Capital 7,50,000 5,00,000
Preference Share Capital 2,50,000 2,50,000
10,00,000 7,50,000