Calculating Profit Margins in Business
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Questions and Answers

Accounts receivable Turnover = Credit sales / Ave. ______

accounts

Inventory Turnover = Cost of goods sold / average ______

inventory

Current Ratio= Current assets / current ______

liabilities

Debt to ______ ratio = Total debt / total assets

<p>asset</p> Signup and view all the answers

Debt to ______ ratio = Long term debt / equity

<p>equity</p> Signup and view all the answers

Gross profit margin = (sales - cost of ______) / sales

<p>sales</p> Signup and view all the answers

Net profit margin = Net ______ / sales

<p>income</p> Signup and view all the answers

Return on ______ = net income / average stockholders’ equity

<p>equity</p> Signup and view all the answers

Operating Return on ______ = operating income / average total assets

<p>assets</p> Signup and view all the answers

Fixed Asset Turnover = Sales / average ______ assets

<p>fixed</p> Signup and view all the answers

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