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Financial Ratio Analysis
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Financial Ratio Analysis
Income Statement Ratio Analysis
Gross Profit
Net Sales
Cost of good sold
Gross Profit
Gross Profit = Net Sales -Cost of good sold
Gross Margin Ratio
Gross Profit
Net Sales
Gross Margin Ratio
Gross Margin Ratio =Gross Profit/ Net Sales
Net Profit Margin Ratio
Net Profit Before Tax
Net Sales
Net Profit Margin Ratio
Net Profit Margin Ratio= Net Profit Before Tax -Net Sales
Inventory Turnover Ratio
Net Sales
Average Inventory at Cost
Inventory Turnover Ratio
Debt/Worth Ratio = Net Sales /Average Inventory at Cost
Account Receivable Turnover Ratio
Net Credit sales/Year
Total current Liabilities
Daily Credit sales=Net Credit sales/Year / Total current Liabilities
Daily Credit sales
Account Receivable
Daily Credit Sales
Account Receivable Turnover(in days)
Return on Assets Ratio
Net Profit Before Tax
Total Assets
Return on Assets
Return on Assets=Net Profit Before Tax/Total Assets
Return on Investment (ROI) Ratio
Net profit Before Tax
Net Worth
Return on Investment
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