0.

0288315
Operating margin ratio = Operating income /Net sales 87

0.2341617
Gross margin ratio = Gross profit/ Net sales 59

0.0125737
Return on Asset = Net income/Total assets 11

Sales per employee = Sales revenue / Average number of 3661.3293

employees 65

0.0663288
Return on Goodwill = Net income / Goodwill 23

Break-even revenue = fixed cost / gross margin ratio

other external cost 187,863

staff cost 141883

deprecation , amortization and impaired loss 56129

0.2447458
Gross pofit margin = gross profit / sales revenue 69

Cash Conversion Cycle

CCC = DIO+DSO-DPO

Where,

DIO = Days of Inventory outstanding

DSO= Days sales outstanding

Days payable Outstanding

Cash conversion cycle is a process that defines the time it takes for a company to convert its
inventories into cash flows. Cash conversion cycle indicates that how well a company is managing its
inventories. High CCC shows the efficiency of a company to generate cash quickly.

There are various methods of cost allocation including Direct labor, Machine time and Production
units. Overhead is allocated over the hours worked by worker in the factory in direct labour method.
Factory overhead is a common type of this method.