Transcription of Financial Ratio Formulas
{{id}} {{{paragraph}}}
Example: air traffic controller
Financial Ratio Formulas
Financial Ratio Formulas Prepared by Pamela Peterson Drake 1. Operating cycle InventoryInventoryNumber of days of inventory Average day's cost of goods soldCost of goods sold / 365== Accounts receivableAccounts receivableNumber of days of receivables Average day's sales on creditSales on credit / 365== Accounts payableAccounts payableNumber of days of payables Average day's purchasesPurchases / 365== Note: Cost ofEnding BeginningPurchases = goods sold inventory inventory++ Number of days Number of daysOperating cycle of inventoryof receivables=+ purchases ofdaysofNumber sreceivable ofdaysofNumber inventory ofdays ofNumber cycle operatingNet += 2.
Gross profit margin Sales = Operating income Operating profit margin = Sales Financial ratio formula sheet, prepared by Pamela Peterson-Drake 1 . Net income Net profit margin Sales = 4. Activity Inventory Cost of goods sold Inventory =turnover Accounts receivable Sales on credit
Loading..
Tags:
Information
Domain:
Source:
Link to this page:
Please notify us if you found a problem with this document: