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    mnckishore's Avatar
    mnckishore Posts: 2, Reputation: 1
    New Member
     
    #1

    Mar 26, 2008, 12:27 AM
    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
    morgaine300's Avatar
    morgaine300 Posts: 6,561, Reputation: 276
    Uber Member
     
    #2

    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.

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