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    N Yun Yung Amount Nung Hinahanapan Mo NG Percentage: Vertical Analysis (N/Net Sales) X 100

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    Eufrocina Nolasco
    The document discusses various financial ratios used to analyze business performance including vertical analysis, horizontal analysis, profitability ratios, efficiency/turnover ratios, liquidity ratios, and leverage ratios.

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    N Yun Yung Amount Nung Hinahanapan Mo NG Percentage: Vertical Analysis (N/Net Sales) X 100

    Uploaded by

    Eufrocina Nolasco
    14 views2 pages
    The document discusses various financial ratios used to analyze business performance including vertical analysis, horizontal analysis, profitability ratios, efficiency/turnover ratios, liquidity ratios, and leverage ratios.

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    BF_FORMULAS

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    The document discusses various financial ratios used to analyze business performance including vertical analysis, horizontal analysis, profitability ratios, efficiency/turnover ratios, liquidity ratios, and leverage ratios.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    14 views2 pages

    N Yun Yung Amount Nung Hinahanapan Mo NG Percentage: Vertical Analysis (N/Net Sales) X 100

    Uploaded by

    Eufrocina Nolasco
    The document discusses various financial ratios used to analyze business performance including vertical analysis, horizontal analysis, profitability ratios, efficiency/turnover ratios, liquidity ratios, and leverage ratios.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
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    BUSINESS FINANCE

    Vertical Analysis = (N/Net Sales) x 100


    N=yun yung amount nung hinahanapan mo ng percentage
    Horizontal Analysis
    Change in Amount= Present Year-Previous Year
    Percentage = (Change in Amount/Previous Year) x 100

    Profitability Ratios
    Return on Equity = (Net Income/Total Stockholder’s Equity) x 100
    Return on Assets = (Net Income/Total Assets) x 100
    Gross Profit Margin = (Gross Profit/Net Sales) x 100
    Operating Profit Margin = (Operating Income/Net Sales) x 100
    Net Profit Margin = (Net Income/Net Sales) x 100

    Efficiency/Turnover Ratios
    Asset Turnover Ratio = Net Sales/Total Assets
    Fixed Assets Turnover Ratio = Net Sales/Fixed Assets (PPE)
    Accounts Receivable Turnover Ratio = Net Sales/Accounts Receivable
    Average Collection Period/Days Receivable= 360/Accts. Receivable Turnover Ratio
    Inventory Turnover Ratio = Cost of Sales/Inventories
    Days of Inventories = 360/Inventory Turnover Ratio
    Accounts Payable Turnover Ratio = Cost of Sales/Trade Accts. Payable (Accts. Payable)
    Days Payable = 360/Accts. Payable Turnover Ratio
    Liquidity Ratios
    Current Ratio = Current Assets/Current Liabilities

    Acid Test/Quick Asset Ratio = (Total Current Assets-Inventories)/Total Current Liabilities

    Leverage Ratios
    Debt Ratio = Total Liabilities/Total Assets
    Debt to Equity Ratio = Total Liabilities/Total Equity
    Investment Coverage Ratio = EBIT /Interest Expense
    EBIT = Income before Taxes + Interest Expense

    Operating Cycle = Days Inventories + Days Receivables


    Inventory Turnover Ratio = Cost of Sales/Inventories
    Days of Inventories = 360/Inventory Turnover Ratio

    Accounts Receivable Turnover Ratio = Net Sales/Accounts Receivable


    Average Collection Period/Days Receiable = 360/Accts. Receivable Turnover Ratio

    Cash Conversion Cycle = Operating Cycle – Days Payable


    Operating Cycle = Days Inventories + Days Receivables

    Accounts Payable Turnover Ratio = Cost of Sales/Trade Accts. Payable (Accts. Payable)
    Days Payable = 360/Accts. Payable Turnover Ratio

    Production Budget
    Required Production=Projected Sales+Target Level-Beginning Inventory
    Ending Inventory (1st QT) = Beginning Inventory (2nd QT)
    Beginning Inventory for the Year = Beginning Inventory in 1 st QT

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