Ratios at A Glance
Ratios at A Glance
Ratios at A Glance
Metric Formula
Operating Working Accounts receivables + Inventory - Accounts
Capital payables
Operating
Working Capital Operating working capital/ Sales
Ratio
Days Sales
Outstanding Accounts receivables / Sales revenue per day
Days
Inventory Inventory / Cost of goods sold per day
Outstanding
Days Payables
Outstanding Accounts payables / Cost of goods sold per day
Variable Margin (Sales revenue - cost of goods sold) / Sales
Operating Margin Operating income / Sales
Return on Equity Net profit / Owners' equity
Return on Earnings after taxes before interest / {(Opening
Average Capital capital employed + Closing capital employed)/2}
Employed
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