what are profitability ratios?
- 4 Answers
- 6063 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 the tds effect in balance sheet if tds receipts?
what is the definition of dual reporting in view of global market?
contents of an invoice receipt? difference b/w statutory audit & internal audit? Where the bank book and the cash book will not reconcile? difference b/w income & expenditure a/c & p/l a/c? what is ERP? what is full form & the application of SAP? Why income statement prepared? What are the reasons where Balance sheet will not tally? How do you calculated Closing stock in the trading a/c? When will the cash book have a Credit balance? Why do you prepare p/l appropriation a/c? What are the 4 difference b/w public and private company? What do you mean by Contingent liability? Explain: Accrual Concept 1. Realisation concept? 2. Accounting concept?
0 Answers Ankur Drugs Pharma, Infosys, RR Donnelley,
The trial balance cheks: 1)Arithmetical mistake 2)honesty of the book keeper 3) valuation of the closing stock 4) nature of the business
suppose total salaries paid is 10000, 1000 is outstanding. how & which amount will shown in receipts & payment, income & expenditure and balance sheet accounts
Dear Sir, Which FORM to be used for service Tax deposit challa for security agency or is it manadatory for deposit challan online .
Sanjay Ltd invited applications from the public for the issue of 10,000 equity shares of Rs. 10 each at a premium of 20%, payable Rs. 3 on application; Rs. 5 on allotment including premium and the balance in two calls of an equal amount. Applications for 15,000 equity shares were received. The directors allotted 10,000 shares to all the applicants on pro-rata basis adjusting the excess application money towards allotment. All money due on allotment and calls were received. Give journal entries to record the above transactions in the books of the company. Also show the balance sheet.
p i r round ?
What is the treatment of preliminary? is this current assets?
Paid-up capital ?
HI FRNDS THIS IS NARESH I DONE MBA (FINANCE)IN 2011. AND I DID COMPLETE SAP FICO.I WANT TO DO START CAREER WITH SAP FICO PLZ TELL ME PLZ HAVE ANY INTERVIEW AS FRESHER IN HYD OR PLZ SEND THIS MAIL...NAINALA.NARESH@GMAIL.COM
0 Answers IBM, Kumaran Systems,
Tell me in accounting, how do you define premises?
Audit 
