Gross margin ratio calculation

    • [DOC File]Ratio of the Month: Working Capital

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      If the asset turnover ratio is multiplied by the operating profit margin ratio, the result is the rate of return on assets. This relationship holds only 1) when the value of farm production is used to calculate both operating profit margin and asset turnover or 2) when gross revenue is used to calculate both measures.

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    • [DOCX File]jlh0609eportfolio.weebly.com

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      Amazon has a ratio of 17.7 for 2012 and 15.8 in 2011. Compared to the industry average of 36.11, Amazon has a ratio that is considered stronger for their industry. Another step in these calculations is the . gross profit margin. This ratio, “measures the profitability of each net sales dollar above the cost of goods sold” (pg. 1026).

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    • [DOC File]CHAPTER 1

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      The gross profit method of inventory estimation (also called the gross margin method) assumes that a business’s gross margin ratio remains relatively stable from year to year. This method is used when a business does not keep records of the retail prices of beginning inventory and purchases and when inventory records are lost or destroyed.

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    • [DOCX File]Cabinet Accessory Company: Sales, Cost, and Gross Profit ...

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      CAC sells cabinet hardware including knobs and pulls. In the project, the student is asked to calculate break even from the data. The project also focuses on the calculation of contribution margin from a set of sales data and how that sales and cost data can be viewed from the …

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    • [DOC File]13 Financial Statement

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      The ratio above that are most relevant to determining which company is charging the most for its goods is the gross margin percentage. Both companies have similar gross margin percentages, but Circuit City’s is a bit higher, indicating it is charging more for its goods in relation to what it …

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    • [DOCX File]CHAPTER 11

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      The margin of safety calculation allows management to determine how close to a danger level the company is operating, and thus provides an indication of risk. ... gross margin per unit for each additional unit sold. ... Assuming there was no change in the product’s $10.00 selling price what is the company’s new contribution margin ratio? 60 ...

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    • [DOC File]MONTH

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      Gross Profit Margin is expressed as a percentage and is calculated by dividing the gross profit by the gross sales. The range of the gross profit margin, in an average parts department, is 28-35%. However, before any judgment can be made on the gross margin in the parts department a detailed analysis of the selling gross profit, by sales type ...

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    • [DOC File]CHAPTER 3

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      The decreases in the ratio of total debt to total assets have resulted in the corresponding increase in the ratio of shareholders' equity to total assets. The common-size income statement shows 1.5 percent increase in cost of goods sold and a corresponding decrease in the gross margin.

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    • [DOC File]FINANCIAL RATIOS REPORT

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      1. Current Ratio: The ratio of current assets to current liabilities (CA to CL). The current ratio indicates the number of dollars of current assets for each dollar of current liabilities; it shows the number of times that current assets will "pay off" the current debts of the facility, and relates to a safety margin. A favorable ratio is > 1.6.

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    • [DOC File]PRINCIPLES OF FINANCE

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      Debt ratio: 50 percent. Quick ratio: 0.80 times. Total assets turnover: 1.5 times . Average Collection Period: 36 days. Gross profit margin: 40 percent. Inventory turnover ratio: 5 times. Note that the amounts shown in bold below are provided. Students are to compute the remaining balance sheet amounts as ell as the sales and cost of goods sold.

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    • [DOC File]Operating Leverage

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      Gross margin 25% 20% Gross margin 33.3% 50% Conversion: Divide GM (as a percentage of CGS) by revenue (when CGS is 100%) to convert GM to a percentage of revenue: 25%/125% = 20%; a markup of 25% with a margin of 20% or for GM as a percentage of CGS when originally given as percentage of revenue: 33.3%/66.7% = 50%; a margin of 33.3% with a ...

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    • [DOCX File]Price/Earnings-to-Growth – PEG Ratio Definition

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      The PEG ratio enhances the P/E ratio by adding in expected earnings growth into the calculation. The PEG ratio is considered to be an indicator of a stock's true value, and similar to the P/E ratio, a lower PEG may indicate that a stock is undervalued.

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    • [DOC File]Name

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      2006 RATIO CALCULATIONS. Name Formula. Calculation Result Current Ratio Current Assets. Current Liabilities $43,824. $48,826. 0.90 Quick Ratio Quick Assets. Current Liabilities $6,414 + $2,662. $48,826. 0.19 Cash flow from Operations to Current Liabilities. Cash flow from Operations. Average Current Liabilities $17,633 ($48,826 + $43,182) / 2 0 ...

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    • [DOC File]Chapter 7--Joint Product and By-Product Costing

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      10. c Joint cost allocation ratio is computed using the constant gross margin percentage method as follows: Estimated gross margin = $175,000 – $75,000 – $25,000 = $75,000. Estimated gross margin ratio = $75,000 / $175,000 = 42.857%. Joint cost allocation is computed as follows: X: $100,000 – $15,000 – ($100,000 × 42.857%) = $42,143

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