A financial indicator used to evaluate a company's profitability in relation to net sales is the net profit ratio. It is the portion of each rupee (or unit of currency) of net sales that, when all costs are subtracted, represents net profit. To determine the net profit ratio, use the following formula:
The ratio of gross profit to net sales, commonly referred to as the gross profit ratio or the gross margin ratio, is a financial measure (revenue). The difference between total revenue and the cost of products sold is used to determine gross profit (COGS).
Yes you are correct, the company has a higher P/E ratio than other firms in the industry
Yes you are correct, (Gross Profit/Net sales)*100
Financial ratios called liquidity ratios assess a company's capacity to satisfy its immediate financial obligations with the help of its most liquid assets. These parameters shed light on the company's near-term financial stability and capacity to meet its short-term financial obligations.
A financial ratio called the debt-equity ratio calculates how much debt a company has in relation to its equity. By dividing the whole debt by the total equity, it is determined.
The asset turnover ratio is a financial measurement that assesses how effectively a company uses its assets to generate sales revenue. The company may not be earning as much revenue in relation to its total assets as its competitors if its asset turnover ratio is lower than the industry average.
It is a financial metric that represents the difference between the revenue generated from the sale of products or services and the direct costs associated with producing those products or services.
Yes you are correct, 0.03
The difference between total revenue (revenues) and the cost of goods sold is referred to as "gross margin" (COGS). It is the fraction of revenue that is left over after direct costs for manufacturing the sold goods or services have been subtracted. The gross margin calculation formula is as follows:
Yes you are correct, 38
A financial term called the margin of safety quantifies how far a company's real sales or revenue can fall before it reaches the breakeven point. It shows the safety net or buffer a business has in place for its sales volume above the breakeven point.
Yes you are correct, Current ratio
Yes you are correct, 8 times
A financial indicator called the degree of operational leverage (DOL) assesses how sensitive a company's operating profitability is to changes in its sales revenue. It sheds light on how variations in sales can impact the operating revenue or operating profit of a business.
Yes you are correct, 0.2
