Introduction There were the task of calculating financial ratios based on the data of the joint-stock companies that attached to us. According to the annual reports of the “Biokimyo”, I have calculated financial ratios

Calculation of asset turnover ratios




Inventory turnover is a financial ratio showing how many times a company has sold and replaced inventory during a given period. Inventory turnover is good when it is between 5 and 10. In our company, it was 13.73, 13.04 in 2018 and 2020. In 2019, it was 19.18 which was the worst result.
The term receivables turnover ratio refers to an accounting measure that quantifies a company's effectiveness in collecting its accounts receivable. It was around 2 in the given period which means, the accounts receivable have been collected about 2 times during that period.
Accounts payable turnover shows how many times a company pays off its accounts payable during a period. It also increased. The higher the accounts payable turnover ratio, the quicker the business is paying off its debt.

Calculation of financial leverage ratios

The higher the debt ratio, the more leveraged a company is, implying greater financial risk. At the same time, leverage is an important tool that companies use to grow, and many businesses find sustainable uses for debt. 
In our company, it can be seen, in 2019 the debt ratio of 0.95 makes not so good position. Although, a debt of 0.8 was much better than other year’s debt.
The debt-to-equity (D/E) ratio compares a company's total liabilities to its shareholder equity and can be used to evaluate how much leverage a company is using. Although it varies from industry to industry, a debt-to-equity ratio of around 2 or 2.5 is generally considered good. In this case, our company’s position is bad.

Calculation of liquidity ratios



The cash ratio is a measurement of a company's liquidity, specifically the ratio of a company's total cash and cash equivalents to its current liabilities. In our company the cash ratio was 0,10% in the previous year, 0.09% in 2019 and 0.22% in the following year. However this is much better, if cash ratio is between 0,5 and 1 respectively.


The quick ratio measures a company's capacity to pay its current liabilities without needing to sell its inventory or obtain additional financing. A good quick ratio is any number greater than 1.0. in our company good quick ratio was in the year of 2019 with 4.58, also the best indicator was in the last year with 12.22.


The current ratio is a liquidity ratio that measures a company's ability to pay short-term obligations or those due within one year. It was at 4.41 in 2018 and increased to 12.15 and 30.18 in 2019 and 2020 respectively. Company’s position was very good.
In conclusion, we calculated profitability, asset turnover, financial leverage and liquidity ratios, believe that some of the calculation of ratios makes benefit for our joint stock company named “Biokimyo”.