Please provide following ratio and nature of ratio:

Question

Question

Please provide following ratio and nature of ratio: Gross Profit % b. EBITDA %) C. PAT% d. Asset turnover ratio a.

a.Gross Profit %

b. EBITDA %

c. PAT%

d. Asset turnover ratio

business accounting

Answer 1

✔ Recommended Answer

Answer #1

1)
a)	Gross profit % = (Net sales-COGS)/Net sales
	The ratio is expressed as a %. It indicates the
	portion of every dollar of sales that is realized as
	margin.
b)	EBITDA % = Earnings before interest, taxes, depreciation and amortizations/Net sales
	It is expressed as a %. It gives the cash operating
	profit that is realized for every dollar of sales.
c)	PAT % = Profit after tax/Net sales.
	It is expressed as a %. It gives the net profit as a
	percentage of net sales.
d)	Asset turnover ratio = Net sales/Average total assets
	The ratio gives the number of times the average total
	assets is turned over by sales.
	The higher the ratio, the better it is. It indicates the
	operational efficiency of the firm.

Answer 2

Similar Homework Help Questions

Which of the following is NOT an asset management ratio? A. Return on assets O B....

Which of the following is NOT an asset management ratio? A. Return on assets O B. ° C. Fixed asset turnover ratio 0 D. Inventory turnover ratio Days sales- in inventory ratio
please type it in computer dont write it by hand For each of the following ratio,...

please type it in computer dont write it by hand For each of the following ratio, please (1) define, (2) show the formula, and (3) discuss when and how to use it. 1. Current Ratio 2. Quick or Acid-Test Ratio 3. Current Cash Debt Coverage 4. Accounts Receivable Turnover 5. Inventory Turnover 6. Asset Turnover 7. Profit Margin on Sales 8. Return on Assets 9. Return on Common Stockholders' Equity 10. Earnings per Share 11. Price-Earnings Ratio 12. Payout Ratio...
1. Which one of the following actions will increase the current ratio, all else constant? Assume...

1. Which one of the following actions will increase the current ratio, all else constant? Assume the current ratio is greater than 1.0. a. Cash purchase of inventory b. Cash payment of an account receivable C Cash payment of an account payable d. Cash sale of inventory at a loss 2. The Equity Multiplier is equal to: @ One plus the debt-equity ratio b. One plus the total asset turnover C. Total debt divided by total equity d. Total equity...

Please check on the following information from Mcdonalds and Wendy's Liquidity Current ratio Quick ratio Comments...

Please check on the following information from Mcdonalds and Wendy's Liquidity Current ratio Quick ratio Comments on liquidity Asset management Total Asset turnover Average collection period (ACP) Comments on asset management
Which of the following is a performance measure? a.Operating margin ratio b. Capitalization ratio c. Accounts...

Which of the following is a performance measure? a.Operating margin ratio b. Capitalization ratio c. Accounts receivable turnover ratio d. Total asset ratio
Financial Analysis Questions on; Industry: Automotive 1. When the debt to equity ratio and long term...

Financial Analysis Questions on; Industry: Automotive 1. When the debt to equity ratio and long term debt to equity ratio is ABOVE the industry average is it bad or good and what does it tell? 2. When the Inventory turnover ratio, Net income/Employees ratio, and Revenue/Employees ratio are BELOW the industry average, what does it tell? Explain and is it bad or good. 3. When the Asset turnover ratio and receivable turnover ratio are ABOVE the industry average is it...

• Current ratio • Quick ratio • Cash ration • Total debit ratio • Equity multiplier...

• Current ratio • Quick ratio • Cash ration • Total debit ratio • Equity multiplier • Time interest earned ratio • Capital intensity • Total asset turnover • Profit margin • Return on assets please explain in accounting terms
QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature...

QUESTION 4 As a barometer of short-term liquidity the current ratio is limited by the nature of its components. All of the following are reasons that this is true except: C A firm could have a high current ratio but not be able to meet demands for cash because inventory is salable only at discounted rices. C The balance sheet is prepared as of a particular date and the actual amount of liquid assets may vary considerably from the date...
Questions: 1. Compute the following ratios for PAYPAL HOLDINGS INC: CURRENT RATIO QUICK RATIO CASH RATIO...

Questions: 1. Compute the following ratios for PAYPAL HOLDINGS INC: CURRENT RATIO QUICK RATIO CASH RATIO TOTAL DEBT RATIO DEBT EQUITY RATIO TIMES INTEREST EARNED RATIO CASH COVERAGE RATIO INVENTORY TURNOVER DAYS SALES IN INVENTORY RECEIVABLES TURNOVER DAYS SALES IN RECEIVABLES TOTAL ASSET TURNOVER CAPITAL INTENSITY PROFIT MARGIN RETURN ON ASSETS RETURN ON EQUITY PRICE EARNINGS RATIO MARKET TO BOOK RATIO 2. Decompose the ROE using the extended Du-Pont Analysis.

16 Quick assets divided by current liabilities is the: Multiple Choice Acid-test ratio. Current ratio. Working...

16 Quick assets divided by current liabilities is the: Multiple Choice Acid-test ratio. Current ratio. Working capital ratio. Current liability turnover ratio. Quick asset turnover ratio. 17 Net sales divided by Average accounts receivable, net is the: Multiple Choice Days' sales uncollected. Average accounts receivable ratio. Current ratio. Profit margin. Accounts receivable turnover ratio. 18 Dividing Accounts receivable, net by Net sales and multiplying the result by 365 is the: Multiple Choice Profit margin. Days' sales uncollected. Accounts receivable turnover...