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Csec Poa Ratios

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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Meganne Lalla
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513 views

Csec Poa Ratios

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.

Uploaded by

Meganne Lalla
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
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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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