Interested to Buy Any Domain ? << Click Here >> for more details...
what are profitability ratios?
- 4 Answers
- 7677 Views
- BA Continnum Solutions, FirstSource, I also Faced
- E-Mail Answers
Answers were Sorted based on User's Feedback
Answer / amandeep kaur
I measures profitability of the company. it is calculated by relating profits to sales, investment or shares.
TYPES:-
1) ROI(Return on investment):- EAT/TOTAL ASSETS.
2) ROE(Return on equity) :- EAT/OWNERS EQUITY.
3) Gross profit ratio :- Gross profit/sales * 100
4) Net profit ratio :- EAT/sales * 100
5) Operating profit ratio :- EBIT/sales * 100
(EAT- Earnings after tax, EBIT- Earnings before interest and tax.)
| Is This Answer Correct ? | 5 Yes | 0 No |
Answer / sheena
profitablity ratios are mainly two types.
1.profitablity as related to sales
Gross profit ratio,Net profit Ratio,Operating
profit Ratio.
2.Profitability as realted to investments
Return on capital employed, Return on Equity funds.
With the help of this ratio we can judge the managerial
efficiency which may not be reflected in net profit ratio.
| Is This Answer Correct ? | 5 Yes | 1 No |
Answer / abhishek kumar
salary a/c dr.
advance salary to employee a/c dr
bank a/c cr.
after this in july months
salary a/c dr
bank a/c cr.
advance salary to party a/c cr.
in august months
same as above
advance salary means, loan & advance( current assets)
| Is This Answer Correct ? | 4 Yes | 15 No |
what is bank reconsilation statement?and hw it will be calculating
What will be the general entry for advance salary given?
What is the general entry for charge on bank overdraft
Explain in simple terms what is the difference between asset, equity, and liabilities?
Hi everyone Sir if we not deposited the TDS before 7th of Every month,tehn what is the penality rate
when we compare to bank statement with the our pass book the enteries are opposite why this happens?
R2R profile required which kinds of work in accounting ?
What is the reason for balance sheet not getting talleyed?
what are the entries for staff taken advance in tally? what are the ledgers to be created for this and under which group? and what are the voucher entries when the advance is refunded?
Difference between Accounting Concepts and Conventions
why loose tools are not treated as current asset?
what is defference between direct and indirect ezpences
Audit 
