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Ratio Analysis
Ratio Analysis
Bre
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Net Sales 8,00,000
Cost of goods sold 5,00,000
Gross Profit 3,00,000
Less: Selling and Admin. Exp 50,000
Operating Income 2,50,000
Add: Other Income 30,000
Earning before interest and tax(EBIT) 2,80,000
Less Interest: 20,000
Profit before tax: (PBT) 2,60,000
Tax 1,00,000
Profit after tax (PAT) 1,60,000
Dividend distributed 50,000
Retained earnings 1,10,000
Gross Profit Ratio =
(Gross Profit / Net Sales ) X 100
Operating Ratio =
((Cost of goods sold + Operating Expenses)/Net Sales ) x 100
Expense Ratio =
(Particular Expense / Net Sales) x 100