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  • Name of Ratio Formula: Average Asset

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    Socorro Monica Sena
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    This document contains formulas for calculating various financial ratios used to analyze corporate performance, including gross profit margin, gross profit rate, operating income margin, net profit margin, return on assets, and return on equity. It then provides numerical examples of applying these ratios to a company called Clicks Company for the years 2023 through 2026.

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    APPLICABLE RATIO

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    This document contains formulas for calculating various financial ratios used to analyze corporate performance, including gross profit margin, gross profit rate, operating income margin, net profit margin, return on assets, and return on equity. It then provides numerical examples of applying these ratios to a company called Clicks Company for the years 2023 through 2026.

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    Download as XLSX, PDF, TXT or read online from Scribd
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    3 views8 pages

    Name of Ratio Formula: Average Asset

    Uploaded by

    Socorro Monica Sena
    This document contains formulas for calculating various financial ratios used to analyze corporate performance, including gross profit margin, gross profit rate, operating income margin, net profit margin, return on assets, and return on equity. It then provides numerical examples of applying these ratios to a company called Clicks Company for the years 2023 through 2026.

    Copyright:

    © All Rights Reserved
    Download as XLSX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 8

    SOLUTION

    Name of Ratio Formula


    sci Gross Profit
    Gross Profit Margin
    sci Net Sales

    Net Sales- Cost of


    sci
    Gross Profit Rate Goods Sold
    sci Net Sales

    Operating Income Margin sci Operating Income


    sci Net Sales

    Net Profit Margin sci Net Income


    sci Net Sales

    Return on Assets SCI Net Income


    SFP Average Assets

    Average Asset Beg 1,037,946.00


    Ending 1,094,723.17
    2,132,669.17
    2.00
    1,066,334.59

    Return on Equity sci Net Income


    sfp Average Equity
    Average Equity Beg 500,310.00
    Ending 556,637.00
    1,056,947.00
    2.00
    ave 528,473.50

    Name of Ratio Formula


    sci Gross Profit
    Gross Profit Margin
    sci Net Sales
    Net Sales- Cost of
    sci
    Gross Profit Rate Goods Sold
    sci Net Sales

    Operating Income Margin sci Operating Income


    sci Net Sales

    Net Profit Margin sci Net Income


    sci Net Sales

    Return on Assets SCI Net Income


    SFP Average Assets

    Average Asset Beg 1,094,723.17


    Ending 889,723.17
    1,984,446.34
    2.00
    992,223.17

    Return on Equity sci Net Income


    sfp Average Equity
    Average Equity Beg 556,637.00
    Ending 301,123.16
    857,760.16
    2.00
    ave 428,880.08

    Name of Ratio Formula


    sci Gross Profit
    Gross Profit Margin
    sci Net Sales

    sci Net Sales- Cost of


    Gross Profit Rate Goods Sold
    sci Net Sales
    Operating Income Margin sci Operating Income
    sci Net Sales

    Net Profit Margin sci Net Income


    sci Net Sales

    Return on Assets SCI Net Income


    SFP Average Assets

    Average Asset Beg 889,723.17


    Ending 1,204,723.17
    2,094,446.34
    2.00
    1,047,223.17

    Return on Equity sci Net Income


    sfp Average Equity
    Average Equity Beg 301,123.16
    Ending 602,361.59
    903,484.75
    2.00
    ave 451,742.38

    Name of Ratio Formula


    sci Gross Profit
    Gross Profit Margin
    sci Net Sales

    sci Net Sales- Cost of


    Gross Profit Rate Goods Sold
    sci Net Sales

    Operating Income Margin sci Operating Income


    sci Net Sales

    Net Profit Margin sci Net Income


    sci Net Sales
    Return on Assets SCI Net Income
    SFP Average Assets

    Average Asset Beg 1,204,723.17


    Ending 1,349,723.17
    2,554,446.34
    2.00
    1,277,223.17

    Return on Equity sci Net Income


    sfp Average Equity
    Average Equity Beg 602,361.59
    Ending 674,861.59
    1,277,223.18
    2.00
    ave 638,611.59
    2023 CLICKS COMPANY
    1,868,769.82
    = 93.96%
    1,989,000.05

    1,868,769.82
    = 93.96%
    1,989,000.05

    1,120,591.14
    = 56.34%
    1,989,000.05

    1,094,932.17
    55.05%
    1,989,000.05

    1,094,932.17
    102.68%
    1,066,334.59

    1,094,932.17
    207.19%
    528,473.50

    2024 CLICKS COMPANY


    2,065,782.14
    = 86.08%
    2,399,869.90
    2,065,782.14
    = 86.08%
    2,399,869.90

    1,415,926.69
    = 59.00%
    2,399,869.90

    1,365,927.71
    56.92%
    2,399,869.90

    1,365,927.71
    137.66%
    992,223.17

    1,365,927.71
    318.49%
    428,880.08

    2025 CLICKS COMPANY


    2,323,981.22
    = 89.38%
    2,599,972.00

    2,323,981.22
    = 89.38%
    2,599,972.00
    1,564,220.13
    = 60.16%
    2,599,972.00

    1,534,521.49
    59.02%
    2,599,972.00

    1,534,521.49
    146.53%
    1,047,223.17

    1,534,521.49
    339.69%
    451,742.38

    2026 CLICKS COMPANY


    2,740,326.10
    = 94.47%
    2,900,794.00

    2,740,326.10
    = 94.47%
    2,900,794.00

    1,918,885.57
    = 66.15%
    2,900,794.00

    1,899,339.91
    65.48%
    2,900,794.00
    1,899,339.91
    148.71%
    1,277,223.17

    1,899,339.91
    297.42%
    638,611.59

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