Chapter 18-Formulas Flashcards
1
Q
How do you calculate Return on Owner’s Investment (ROI)
A
Net Profit/Average Capital *100
2
Q
How to you calculate debt ratio?
A
Total Liabilities/Total Assets * 100
3
Q
How Do you calculate Return on Assets (ROA)?
A
Net Profit/Average Total Assets * 100
4
Q
How do you calculate Asset Turnover (ATO)?
A
Net Sales/Average Total Assets
5
Q
How do you calculate Net Profit Margin (NPM)?
A
Net Profit/Net Sales * 100
6
Q
How do you calculate Gross Profit Margin (GPM)?
A
Gross Profit/Net Sales * 100
