what are profitability ratios?
- 4 Answers
- 6081 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 accounting & why it is used?
hi friends how many types of vouchers there i know cash voucher, debit voucher, credit voucher, journal vourcher, purchase voucher, sales vouchers, if any other voucher is there pls tell me friends
Do you know what are trade bills?
what diff, between companay balance sheet and indivisual balance sheet?
If A car in Name of company got damaged. and total amount of its repairing is 15,000/- and insurance company give me 10,000/- of it. Balance amount we paid through bank or cash .Then What is the entry for this in books.Kindly mention Ledgers with their respective Group Head.
what TYPE OF INVOICE SHOULD RAISE TO C&F agent ?
how can we do salary entry. inwhich gross salary, da, hrs, pf esi etc. included. tell me what is the journal entry for this type of question.
What is the present Central sales tax rate in India? Also let me know the maxium and minium sales tax rate in India. If the VAT rate changed of any state what will be the impact of CST.
i am working in construction company.we have more then one projects.i enter attendance in payroll projectwise.i want salaries in projectwise not overall in payroll autofill. thankyou sir
any one provide me mm & fi configration steps
WHAT IS THE DIFF BETWEEN REVENUE AND INCOME??
What account payable entry
Audit 
