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Return On Sales X Asset Turnover: ROS 0.3 or 30%

The document defines and provides calculations for various financial metrics such as return on sales (ROS), return on assets (ROA), return on equity (ROE), gross profit margin, asset turnover, operating ratio, earnings per share, price earnings ratio, capitalization rate, yield on common stock, payout ratio, retained earnings to capital stock ratio, market to book value ratio, and dividend per share. An example calculation is shown for ROS as 30% based on net income of $30,000 and net sales of $100,000.

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Elisha Lois Manlulu
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67 views5 pages

Return On Sales X Asset Turnover: ROS 0.3 or 30%

The document defines and provides calculations for various financial metrics such as return on sales (ROS), return on assets (ROA), return on equity (ROE), gross profit margin, asset turnover, operating ratio, earnings per share, price earnings ratio, capitalization rate, yield on common stock, payout ratio, retained earnings to capital stock ratio, market to book value ratio, and dividend per share. An example calculation is shown for ROS as 30% based on net income of $30,000 and net sales of $100,000.

Uploaded by

Elisha Lois Manlulu
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Net income

ROS=
Net Sales

30,000
ROS=
100,000

ROS= 0.3 or 30%

ROA=¿ Return on sales x Asset turnover

Net Income
ROA=
Average Total Assets

Total Assets Jan .1+Total asset Jan .2


Average Total Assets=
2

100 , 000+200,000
Average Total Assets=
2

Average Total Assets=150,000

30,000
ROA=
150,000

ROA= 0.2 or 20%

Net Income
ROE=
Shareholde r ' s Equity
10,000
ROE=
20,000

ROE= 0.5 or 50%


Gross Profit
Gross Profit Margin=
Net Sales

40,000
Gross Profit Margin=
100,000

Gross Profit Margin=0.4∨40 %

Net Sales
Asset Turnover=
Average Total Asset

100,000
Asset Turnover =
150,000

Asset Turnover =0.66

Cost of sales+Operating expenses


Operating Ratio=
Net Sales

Net Income
Return on Current Asset =
Average of Current Assets

Cost of sales+Operating expenses


Return per Current Asset Turnover =
Average of Current Assets
Return on Current Asset s
Rate of Return per Current Asset Turnover =
Current Asset Turnover

Net Income
Rate ofReturn on Working Capital=
Average of Working Capital

Cost of sales+Operating expenses


WorkingCapital Turnover=
Average of WorkingCapital

Rate ofReturn on WorkingCapital


Rate ofReturn on Working CapitalTurnover =
Working Capital Turnover

Net Sales
Invested Capital Turnover=
Average Owne r ' s Equity

Net Income
Return on owne r ' s equity=
Average Owne r ' s Equity

Net Income
Return on owne r ' s equity=
Average Owne r ' s Equity

0.80
Rate of Return per Current Asset Turnover =
1.33

Rate of Return per Current Asset Turnover =0.60∨60 %

Net Income−Preferred stock Dividends Requirement


Earnings per Share=
Ave . No. of Common Shares Outstanding
150,000−10,000
Earnings per Share=
112,000

Earnings per Share=1.25

Market Price per Share


Price Earnings Ratio=
Earnings per Share

100,000
Price Earnings Ratio=
10,000

Price Earnings Ratio=10

Earnings per Share


Capitalization Rate=
Market Price per Share

Dividends per Share


Yield on Common Stock=
Market Value per Share of Common Stock

Dividends per Share


Payout Ratio=
Earnings per Share

Retained Earn ings


Retained Earnings ¿Capital Stock=
Capital Stock

Market Price per Share


Market Price¿ Book Value per Share=
Book Value per Share
Dividend paid ∨Declared
Dividend per Share=
Common Shares Outstanding

Total amt . of share x no . of months used


Average No .of common Shares Outstanding=
12

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