Submitted by: Submitted by decastrojulia
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Category: Business and Industry
Date Submitted: 01/09/2013 11:21 PM
Management Advisory Services
Topic – FINANCIAL STATEMENTS ANALYSIS
Most Commonly Used Ratios – Formula and Significance
|1. Ratios to measure PROFITABILITY | |
|Name |Formula |Significance |
| | | |
| | |Indicates net profit per peso of |
|a. Rate of Return on Sales | |sales or the profitability based on |
| | |sales |
| | | |
| | |Indicates the profitability in the use of |
|b. Rate of Return on | |invested capital or the amount of return |
|Stockholders’ Equity | |per peso of stockholders’ equity. |
| | | |
| | |Number of times total investment (total |
| | |assets) turned over....