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    Csec Poa Ratios

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    Meganne Lalla
    This document discusses ratios and their use in determining business performance and profitability. It covers different types of ratios including profitability, liquidity, and efficiency. It provides examples of calculating ratios like gross profit to sales, stock turnover, net profit to sales, and expense to sales using given financial information. It also discusses calculating liquid assets and ratios involving capital employed and average capital as well as credit sales and purchases figures.

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    Csec Poa Ratios

    Uploaded by

    Meganne Lalla
    185 views9 pages
    This document discusses ratios and their use in determining business performance and profitability. It covers different types of ratios including profitability, liquidity, and efficiency. It provides examples of calculating ratios like gross profit to sales, stock turnover, net profit to sales, and expense to sales using given financial information. It also discusses calculating liquid assets and ratios involving capital employed and average capital as well as credit sales and purchases figures.

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    This document discusses ratios and their use in determining business performance and profitability. It covers different types of ratios including profitability, liquidity, and efficiency. It provides examples of calculating ratios like gross profit to sales, stock turnover, net profit to sales, and expense to sales using given financial information. It also discusses calculating liquid assets and ratios involving capital employed and average capital as well as credit sales and purchases figures.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    185 views9 pages

    Csec Poa Ratios

    Uploaded by

    Meganne Lalla
    This document discusses ratios and their use in determining business performance and profitability. It covers different types of ratios including profitability, liquidity, and efficiency. It provides examples of calculating ratios like gross profit to sales, stock turnover, net profit to sales, and expense to sales using given financial information. It also discusses calculating liquid assets and ratios involving capital employed and average capital as well as credit sales and purchases figures.

    Copyright:

    © All Rights Reserved
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 9

    CSEC POA

    FORM 4-5
    RATIOS
    RATIOS
    • WE USE RATIOS TO DETERMINE THE PERFORMANCE
    (PROFITABILITY) OF A BUSINESS.
    • TYPES OF RATIOS:
    1. Profitability
    2. Liquidity
    3. Efficiency
    RATIO FORMULAE
    QUESTION 1

    CALCULATE:
    1) Gross Profit to sales
    2) Stock Turnover :
    ANSWER:
    QUESTION 2
    CALCULATE WHEN
    REVENUE IS $400,000:
    1. Net Profit to sales
    2. Expense to sales
    ANSWER:
    QUESTION 3
    CALCULATE THE FOLLOWING:
    (NB: Liquid Assets = Current Assets – Inve

    NB: CAPITAL EMPLOYED USING :


    1) OPENING CAPITAL
    2) CLOSING CAPITAL
    3) AVERAGE CAPITAL

    NB: CREDIT SALES = $372,000

    NB: CREDIT PURCHASES = $300,000


    ANSWERS:

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