Documente Academic
Documente Profesional
Documente Cultură
120000-70000 CA
A/R Turnover Net Credit Sales/Average AR Sales of 1000,000, 100,000 is cash sales
900,000/ ((450,000+350,000)/2) AR Y1 450000
2.25 x Y2 350000
The company collects accounts receivable 2.25 times in a year
Inventory Turnover
Cost of Sales/ Average Inventory Cost of Sales 600000
600,000/((124,000+156,000)/2) Inventory Y1 124000
4.29 X y2 156,000
The company replenishes its inventory 4.29 times a year.
Average Age of Inventory
365/Inv Turnover
365/4.29
85.08 days
86 days
The company replenishes its inventory within 86 days.
Profitability Ratios
Gross Profit Margin
Gross Profit/Net Sales
81,000/180,000
45%
For every peso of sale the company receives a gross profit of .45 to cover your operating
expense.
Net Profit
Margin
Net Profit/Net Sales
14,040/180,000
7.80%
For every peso of sale the company receives, it earns 7.8 percent .
Return on
Equity
Profit / Average Equity Y1 240,000
(14,040/((240,000+260,000)/2) Y2 260,000
5.62%
For every peso of equity that the owners invested, they will earn 5.62%.
Debt to Equity
Debt/Equity
430,000/270,000
1.59
For every peso that the owner invested in the company, it owes the creditors 1.59 peso
Equity Ratio
Total Equity/ Total Asset
270,000/700,000
38.57%
38.57 percent of the total assets is financed through equity.