Gross profit as a percentage of sales Indicator of how much

Gross profit as a percentage of sales. Indicator of how much profit is earned on products/services without consideration of selling and administration costs. CoGS Indicator of the businesses\" vulnerability to risk. These ratios are often used by creditors to determine the ability of the business to repay loans Capital structure This calculation shows the average number of days it takes to collect accounts receivable. Days in receivables Considered a measure of how effectively assets are used to generate a return Return on assets Assets = Liabilities + Owner\'s Basic accounting equation Equity Indicates how efficiently the business generates sales on each dollar of assets Net profit margin This calculation shows the average number of days it will take to sell inventory Inventory turnover

Solution

1) Gross profit Margin :This ratio shows the Relationship Between Gross profit and sales .This Rate helps to measure the operational performance of Business.

2)Liquidity :This ratio helps to measure the ability of business its current debt.

3)Days in receivables : It Helps to calculate the number of days it takes to collect receivables.

4)Return on asset :It is Given by Net profit divided by Total asset .This ratio measures how effectively asset is used to generate returns.

5)Basic accounting equation

6)sales to asset ratio /Asset turnover ratio :This ratio measures the amount of sales generated by each dollar sales..

7)Days in Inventory :Days taken to sell Inventory

8)Debt ratio :It measures the company ability to pay its debt

9)Profitability : Ability of business to generate profit.

10)variable cost Ratio :Percentage of expense that varies directly to total sales

11)Net Profit margin

12)Return on asset

13)Inventory turnover :How much time it take to sell average inventory for every cost of dollar sales

14)Return on equity /Return on Investment :How much profit is generated on capital invested in a business

15)SG& A to sales ratio