Make big profit

One Response to “Accounting Ratios like Gross profit to cost of product ratio?”

1. Warrior_Princess08, on June 16th, 2010 at 5:58 am Said:

   Hey, I’m not exactly sure what you are asking but I will explain a few ratios and give you their meaning. When you evaluate management you can basically look at any ratio because they are basically responsible for making the decisions and determining the company policies as well as seeing that it gets implemented. Take for example the return on asset ratio.. you take the earnings before interest and tax divided by the total assets. When this answer is lower than the required rate of return expected by the investors it means that the assets are not yielding enough returns. This will cause investors to rather invest their money where they get a higher return for the same or less risk.

   Income statement ratios has to do with the Performance of the company.. It will be ratios like gross profit %, nett income %, ect.

   Look at the following site for a comprehensive list of ratio’s

Leave a Reply

Name (required)

Mail (will not be published) (required)

Website

CAPTCHA Code *