Gross profit as a percentage of sales. Indicator of how much profit is earned on products/services without consideration of selling and administration costs. CoGS Indicator of the businesses" vulnerability to risk. These ratios are often used by creditors to determine the ability of the business to repay loans Capital structure This calculation shows the average number of days it takes to collect accounts receivable. Days in receivables Considered a measure of how effectively assets are used to generate a return Return on assets Assets = Liabilities + Owner's Basic accounting equation Equity Indicates how efficiently the business generates sales on each dollar of assets Net profit margin This calculation shows the average number of days it will take to sell inventory Inventory turnover