Believe the Balance sheet ratios

Believe the Balance sheet ratios

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Behold any yearend Balance Sheet,

Produced by Accountants high rate,

Portrays an arena of corporate game,

Assets and Liabilities comprising the team.

Capital gets ploughed to free reserves,

Devoid of intangible goodwill and others,

Build up the net worth in infinite height,

Enrich the stakeholders’ a bonus treat.

Current is always valuable,

Current ratio more reliable,

Sum of the cash and paid stock,

Generate the working capital block.

Co-exist the debtors and creditors current,

Their ratio is sure determinant,

Displays the liquid state of the firm,

Good debts and credits in realizable form.

The gap of assets and liabilities,

Achieved by instant activities,

Provide the day to day funds required,

Instill the form of working capital required.

Is there any company without public equity

Borrowing the funds from Banks of quality,

The ratio of debts and equity,

Shows signs of solvent quantity.

Some firms make huge and high profits,

Beside their increase in sales targets,

Whither they reach a good and real,

Gross profit ratio of high level.

Abundant are many such Balance Sheet tips,

As coverage to service the long term debts,

Debtors and creditors too form ratios,

Operating along with earning per share.

Parameswara Iyer Vijayaraghavan

Tuticorin Branch year 2000   Rajesh Brindha  Chitra Raghavan