Login

Profitability ratios Makwebo Zed 2023 Industry Gross Profit Margin (GPM)=(GP/S)*100...

50.1K

Verified Solution

Question

Accounting

Profitability ratios

Makwebo Zed $2023$

Industry

Gross Profit Margin $($ GPM $) = ($ GP $/$ S $) * 100$

$23.4 %$

$28.5 %$

Operating Profit Margin $($ OPM $) = ($ OP $/) * 100$

$19.6 %$

$21.6 %$

Net Profit Margin $($ NPM $) = ($ NP $/$ S $) * 100$

$9.64 %$

$11.7 %$

Return On Assets $($ ROA $) = ($ NP $/$ A $) * 100$

$7.96 %$

$13.2 %$

Activity Ratios

Asset turnover $= ($ S $/$ A $)$

$0.826$ times

$1.119$ times

Inventory turnover $= ($ COGS $/$ Closing Inventory $)$

$3.877$ times

$3.536$ times

Average collection period $= ($ Receivables $/$ Sales $)$

$40.3$ days

$24.4$ days

Liquidity ratios

Current ratio $= ($ CA $/$ CL $)$

$1.93$ : $1$

$2.03$ : $1$

Acid test ratio $= ($ CA Inv $) /$ CL

$0.969$ : $1$

$0.851$ : $1$

Leverage or Gearing ratios

Total debt $($ All dedt $/$ equity $) * 100$

$0.636$

$0.204$

Ltd to total capitalization $($ LTD $/ ($ LTD $+$ E $) * 100$

$0.487$

$0.059$

Interest coverage $= ($ OP $/$ Interest expense $}$

$4.533$

$21.829$

The above ratios are for Makwebo Zed for $2023 .$ Based on these ratios, prepare a report to the chairperson of the board of Makwebo Zed. Your report should clearly interpret and evaluate the information given and ncorporate limitations of ratios.

Answer & Explanation Solved by verified expert

answer-section

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:

Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!

Become a Member

Other questions asked by students

Q

a box of 400 ipads has 50 defective and the rest are good quality. A sample...

Statistics

Q

Why is platinum the element of choice to study the trans effect?

Chemistry

Q

A sphere of radius R1 has a volume charge density given by row = Mr where...

Physics

Q

QUESTION 4 What nucleic acid related characteristic distinguish between prokaryotic and eukaryotic cells For the...

Biology

Q

When a particular current flows through a resistance wire a the heat produced will be...

Physics

Q

th options without selecting any incorrect option second option in this case will result in...

Physics

Q

Suppose that the functions g and fare defined as follows.g(x)=x+8f(x) = (x+3)(x-3)(a) Find() (5).(a)9(b) Find...

Calculus

Q

Mari needs to design an open-top box with a square base. Due to the nature...

Calculus

Q

On July 15,2024, Ortiz & Company signed a contract to provide EverFresh Bakery with an...

Accounting

Q

Amazon's 2022 Operating Leases/Finance Leases \table[[,Operating Leases,Finance Leases],[\table[[Total future minimum lease],[payments]],,],[Less: Interest,(12,233),(2,236)

Accounting

Q

Resutek Co. issued a 90-day note payable for $300,000 on November 1, 2019 with an...

Accounting

Q

1) Why do accountants distinguish between so many different types of costs? Provide examples to...

Accounting

1 Answer

$0.99

~~$1.99~~

(Save $1 )

One time Pay

No Ads
Answer to 1 Question
Get free Zin AI - 50 Thousand Words per Month

Best

Unlimited

$4.99*

~~$9.99~~

(Save $5 )

Billed Monthly

No Ads
Answers to Unlimited Questions
Get free Zin AI - 3 Million Words per Month

*First month only

Free

$0

Get this answer for free!
Sign up now to unlock the answer instantly

You can see the logs in the Dashboard.

Sign In

Don't have an account? Sign Up