Match List-I with List-II:

List-I	List-II
(Ratio)	(Formula)
(A) Current ratio	(I) Market Price of a share/EPS
(B) Operating Margin Ratio	(II) Current Assets/Current Liabilities
(C) Return on Capital employed	(III) 100 - Operating Ratio
(D) Price earning ratio	(IV) Profit before interest and tax/Capital employed X 100

Choose the correct answer from the options given below:

Current Ratio measures the ability of a business to pay its current liabilities using current assets.

Formula: $\text{Current Ratio} = \frac{\text{Current Assets}}{\text{Current Liabilities}}$

(A) matches with (II)

Operating Margin Ratio (also called Operating Profit Ratio) indicates the operating profit earned per rupee of net sales.

Formula: $\text{Operating Margin Ratio} = 100 - \text{Operating Ratio}$

where Operating Ratio = $\frac{\text{Cost of Revenue from Operations + Operating Expenses}}{\text{Net Sales}} \times 100$

(B) matches with (III)

Return on Capital Employed (ROCE) measures how efficiently capital is being utilized to generate profits.

Formula: $\text{ROCE} = \frac{\text{Profit before Interest and Tax}}{\text{Capital Employed}} \times 100$

Capital Employed = Total Assets - Current Liabilities OR Shareholders' Funds + Long-term Borrowings

(C) matches with (IV)

Price Earning Ratio (P/E Ratio) indicates the price investors are willing to pay for each rupee of earnings.

Formula: $\text{P/E Ratio} = \frac{\text{Market Price per Share}}{\text{Earnings Per Share (EPS)}}$

(D) matches with (I)

Complete Matching:

• (A) → (II)
• (B) → (III)
• (C) → (IV)
• (D) → (I)

Correct Answer: Option 2