Net fixed assets, Market capitalisation, Debt-equity

Net fixed assets
This is the amount of fixed assets as plant and machinery owned by the company, less the depreciation expenses that have been charged to the profit-and-loss account over the years. Capital work-in-progress is also included in net fixed assets.

Market capitalisation


Market capitalisation is obtained by multiplying the shares outstanding at the end of the latest reporting period, by the adjusted share price (3 November 2006)

Debt-equity ratio

This is the long-term debt of the company divided by its net worth or the stockholders’ equity. Debt-equity ratios vary considerably, depending on the business of the company and the attitude of the management towards debt. Companies in heavy industries such as fertilizers and steel, which require large investments in property, plant and machinery, or technology may have higher debt-equity ratios.

Return on capital

PAT plus interest (adjusted for preference dividend) divided by the total capital employed in the company (i.e net worth plus long-term debt) as at the end of that year/period. It indicates the efficiency with which funds (shareholder or borrowed) are being used.



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