Wednesday, February 10, 2010

Ratio Tips (Sorry for late posting)

Gross Profit Margin --> GP/Sales x 100 = ? %

Net Profit Margin --> Net Profit B4 Tax/Sales x 100 = ? %

Current Ratio --> CA/CL (Ideal ratio is 2:1)

Quick Ratio --> (CA - Stock - Prepayment) / CL (Ideal ratio is 1:1)

Stock Turnover(In days) --> [Average stock(Opening + Closing)/2] / C.O.G.S x 365 days = ?%

Stock Turnover(In Times) --> Cost of sales / Avg Stock

Debtor Turnover(In days) --> [Average Debtors (Opening + Closing)/2] / Net Credit Sales x 365 = ? days

Debtor Turnover (In Times) -->Net Credit Sales / Avg Debtors

Creditor Turnover(In days) --> [Average Creditors/2] / Net Credit Purchases x 365 = ? days

Creditor Turnover(In Times) --> Credit Purchases / Avg Creditor

Earning Per Share...Teacher say dun need,but dunno y in qns,maybe u like to memorise too...
Net Profit After Tax / No. of Ordinary Shares

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