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Profitability ratios Makwebo Zed 2 0 2 3 Industry Gross Profit Margin ( GPM ) = ( GP / S ) * 1 0 0
Profitability ratios
Makwebo Zed
Industry
Gross Profit Margin GPMGPS
Operating Profit Margin OPMOP
Net Profit Margin NPMNPS
Return On Assets ROANPA
Activity Ratios
Asset turnover SA
times
times
Inventory turnoverCOGSClosing Inventory
times
times
Average collection period ReceivablesSales
days
days
Liquidity ratios
Current ratio CACL
:
:
Acid test ratio CA InvCL
:
:
Leverage or Gearing ratios
Total debt All dedtequity
Ltd to total capitalization LTDLTDE
Interest coverage OPInterest expense
The above ratios are for Makwebo Zed for 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.
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