Need Some help with the knowledge of Ratio interpretation .

Annual Ratio

Gross profit margin

0.41

Net profit

0.07

Return on total assets

0.03

Current ratio

1.05

Debtors collection period

11.20

Inventory turnover period

151.08

Shareholders loans to total assets ratio

0.05

Times interest earned ratio

5.57

Example

Gross Profit Margin measures the proportion of money left over from revenues after accounting for Cost of Goods Sold. The actual GPM obtained was 41% which indicates the company earns 41 cents on the dollar in gross margin.