was it even..... (1 Viewer)

[chris42]

Yeah.. This year they changed the layout of the paper.. Mind you I didn't see much globalisation in the paper. maybe because it was spread out through the different sections.

 

[kaboomable]

it can't be the net profit ratio...

net profit = ( revenue - expenses) -- obviously revenue here refers to gross profit...
but then u divide the net profit by revenue thinkin it meant sales.... it can't be both...

 

[shazabdazla]

sneaky pete....yeh i used the net profit ratio...it was an ambiguous question, wasnt it, as you had to interpret wether expenses where operating expenses (what i guessed) or cogs....they shouldv been more sspecific.....

anyway yeh i said net profit ratio = (revenue - expenses) divided by revenue.....and i got 0.33:1........or (1:3)

 

[PG5]

i used return on owner's equity and i got
0.1:1... 10%
hmm... and the return on owner's equity for both were the same
they were both:

4 000 x 100
-----------------
40 000

feel free to correct me..

 

[PG5]

so here are the figures:
Margie's Kitchen Shop
NPR= 33% (4 000 x 100 / 12 000)
Working Capital Ratio= 2:1 (80 000 / 40 000)
RoOE= 10% (4 000 x 100 / 40 000)

Lim's Store
NPR = 20% (4 000 x 100 / 20 000)
Working Capital Ratio= 1:1 (not sure bout figures but this was worked out already)
RoOE= 10% (4 000 x 100 / 40 000)

from this it could be seen that Margie's Shop was more profitable (higher NPR) and more liquid (greater working capital ratio).

 

[raekwon]

i used the expense ratio:

expense/revenue

 

[sneaky pete]

Originally posted by shazabdazla
sneaky pete....yeh i used the net profit ratio...it was an ambiguous question, wasnt it, as you had to interpret wether expenses where operating expenses (what i guessed) or cogs....they shouldv been more sspecific.....

anyway yeh i said net profit ratio = (revenue - expenses) divided by revenue.....and i got 0.33:1........or (1:3)

i got the same answer and made the same assumptions you did, feels better im not the only one

Originally posted by raekwon
i used the expense ratio:

expense/revenue

expense ratio is a efficiency ratio, as opposed to profitability ratio which was asked..? :|

 

[LaZy_KoReAn]

I can't even remember what i wrote for my exam

I've lost all my crammed memory of business

Isn't efficiency ratio debt to equity? thats TL/OE

meh who cares no more business