Cost of Goods Sold = Sales – Gross Profit
Operating Expenses = All the expenses debited in the profit & Loss A/c
However certain expenses as financial, selling and distribution and other such minimal ones are excluded.
Gross Profit Ratio = (Gross Profit/Net Sales) x 100
Gross Profit = Sales – Cost of Goods Sold
Net Sales = Gross Sales – Sales Return/Return Inwards
Operating Profit Ratio = (Operating profit x Net sales)/100
Operating Profit = Non-Operating Expenses + Net Profit -Non Operating Income
Return on Total Assets = (Return/Total Assets) x 100
Dividend Per Share = (Dividend paid to equity shareholder’s/No of equity share)
Return on Shareholder’s Return = (Return/Shareholder’s fund) x 100
Dividend Pay-out Ratio = Dividend per share/Earning per share
Earning per Equity share = Profit available to equity shares/no of equity shares
Price earning’s ratio = Market price of share/Earning per share
Dividend Yield = Dividend per share/Market price per share
Interest Coverage Ratio = EBIT/Fixed interest expenses
Fixed Interest Coverage = Operating Income/Annual Interest Expenses
Links of Previous Main Topic:-
- Introduction to accounting and branches of accounting
- Preparation of final accounts
- Introduction of fund flow statement
- Introduction cash flow statement
- Ratio analysis significance of ratio analysis
- Advantages of ratio analysis
- Limitation of ratio analysis
- Classification of ratios
Links of Next Finance Topics:-
