Financial Ratio Formulae
Financial Ratio Formulae http://www.HelpWithAssignment.com Liquidity Ratio
1. Current Ratio = Current Asset / Current Liabilities
2. Quick Ratio = (Current Asset – Inventory)/ Current Liabilities
3. Net working capital to sales ratio = Current Asset - Current Liabilities/ Sales
Profitability Ratio
1. Gross Profit Margin = Gross Income / Sales
2. Operating Profit Margin = Operating income/ Sales
3. Net Profit Margin = Net Profit/ Sales
Operating Ratio
A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
= Operating Expense/ Net Sales
1. Asset Turnover Ratio = Revenue/ Average Asset
2. Sales/Revenue Per Employee = Revenue/ Number of employees
3. Operating Cycle Ratio = Days Inventory Outstanding + Days Sales outstanding - Days Payable Outstanding
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1. Current Ratio = Current Asset / Current Liabilities
2. Quick Ratio = (Current Asset – Inventory)/ Current Liabilities
3. Net working capital to sales ratio = Current Asset - Current Liabilities/ Sales
Profitability Ratio
1. Gross Profit Margin = Gross Income / Sales
2. Operating Profit Margin = Operating income/ Sales
3. Net Profit Margin = Net Profit/ Sales
Operating Ratio
A ratio that shows the efficiency of a company's management by comparing operating expense to net sales. Calculated as:
= Operating Expense/ Net Sales
1. Asset Turnover Ratio = Revenue/ Average Asset
2. Sales/Revenue Per Employee = Revenue/ Number of employees
3. Operating Cycle Ratio = Days Inventory Outstanding + Days Sales outstanding - Days Payable Outstanding
About http://www.HelpWithAssignment.com
We are a bunch of talented and ambitious people from around the world. Our network spans 3 continents and several countries. This is necessary to service requests from different time zones. www.HelpWithAssignment.com has provided a platform for talented individuals to come together to help individuals do well in their assignments, homework, thesis, term papers and projects while earning a valuable side income.
Services: We offer three kinds of services: Assignment Help, Thesis Help and Online Tuitions for students in their college or University. Our subject coverage is vast and includes accounting, finance, marketing, statistics, C++/Java programming, IT, operations, supply chain, human resources (HR), strategy, economics, science, engineering, literature, nursing, law, sociology, philosophy and liguistics amongst others. We also help students complete their thesis, thesis proposal, report writing, statistical analysis, surveys