Ask Me Help Desk

Ask Me Help Desk (https://www.askmehelpdesk.com/forum.php)
-   Accounting (https://www.askmehelpdesk.com/forumdisplay.php?f=19)
-   -   Ratios and their suggested % s (https://www.askmehelpdesk.com/showthread.php?t=198726)

  • Mar 26, 2008, 12:27 AM
    mnckishore
    Ratios and their suggested % s
    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
  • Mar 26, 2008, 11:53 PM
    morgaine300
    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.

  • All times are GMT -7. The time now is 04:10 PM.