Please provide following ratio and nature of ratio:

Question

Question

Please provide following ratio and nature of ratio: Gross Profit % b. EBITDA %) C. PAT% d. Asset turnover ratio a.

a.Gross Profit %

b. EBITDA %

c. PAT%

d. Asset turnover ratio

Answer 1

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Answer #1

1)
a)	Gross profit % = (Net sales-COGS)/Net sales
	The ratio is expressed as a %. It indicates the
	portion of every dollar of sales that is realized as
	margin.
b)	EBITDA % = Earnings before interest, taxes, depreciation and amortizations/Net sales
	It is expressed as a %. It gives the cash operating
	profit that is realized for every dollar of sales.
c)	PAT % = Profit after tax/Net sales.
	It is expressed as a %. It gives the net profit as a
	percentage of net sales.
d)	Asset turnover ratio = Net sales/Average total assets
	The ratio gives the number of times the average total
	assets is turned over by sales.
	The higher the ratio, the better it is. It indicates the
	operational efficiency of the firm.

Answer 2

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