Write the formula for calculating each of the following ratios: a. Net profit margin b. Gross profit

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Write the formula for calculating each of the following ratios:
a. Net profit margin
b. Gross profit margin
c. ROA (broken down into the profit margin percentage and total asset turnover rate)
d. ROE
e. Accounts receivable turnover
f. Inventory turnover
g. Accounts payable turnover
h. Current ratio
i. Quick ratio
j. Operating cash flow to short-term debt ratio
k. Debt to equity ratio
1. Debt to total assets
m. Times interest earned ratio
n. Operating cash flow to total debt ratio Accounts Payable
Accounts payable (AP) are bills to be paid as part of the normal course of business.This is a standard accounting term, one of the most common liabilities, which normally appears in the balance sheet listing of liabilities. Businesses receive...
Accounts Receivable
Accounts receivables are debts owed to your company, usually from sales on credit. Accounts receivable is business asset, the sum of the money owed to you by customers who haven’t paid.The standard procedure in business-to-business sales is that...
Asset Turnover
Asset turnover is sales divided by total assets. Important for comparison over time and to other companies of the same industry. This is a standard business ratio.
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Financial Accounting A User Perspective

ISBN: 978-0470676608

6th Canadian Edition

Authors: Robert E Hoskin, Maureen R Fizzell, Donald C Cherry

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