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mnckishore
Mar 26, 2008, 12:27 AM
Can any one please let me know the suggested % of ratios

Ex:-Current assets\current liabilites = Current assets ratio

(2:1) is the suggested ratio

Like the above Please let me know Below

Gross Margin: gross profit ÷ revenue
R&D to Sales: R&D expense ÷ revenue
Operating Margin: operating income ÷ revenue [also known as operating profit margin]
Interest coverage ratio: EBIT ÷ interest expense
Net Profit Margin: net income [after taxes] ÷ revenue
Return on Equity (ROE): net profit ÷ average shareholder equity for the period
Asset Turnover: revenue ÷ average assets for period
Return on Assets: Net profit margin * asset turnover or net income ÷ total average assets for the period
1Working Capital per Dollar of Sales: Working Capital ÷ Total Sales
1Receivable Turnover: Net Credit Sales ÷ Average Net Receivables for the Period
1Inventory Turnover: Cost of Goods Sold ÷ Average Inventory for the Period

morgaine300
Mar 26, 2008, 11:53 PM
Suggested ratios based on what? These ratios differ among different industries. In fact, they really don't have much meaning unless compared to something else.