Business planning formula

The formula for gross profit ratio is

• Net profit / Sales

• Gross profit / Sales

• Sales / gross profit

• Gross profit / Net profit

The formula for net profit ratio

• Sales / Net profit

• Gross profit / Sales

• Net profit / Sales

• Net profit / Gross profit

The formula for return on assets is

• Net profit / Total assets

• Total assets / net profit

• Net profit / Current assets

• Current assets / net profit

The formula for current ratio is

• Current assets - inventory / current liability

• Current assets / current liability - inventory

• Current liability / current assets

• Current assets / current liability

The formula for acid test ratio is

• Current assets / total assets

• Current assets - inventory / current liability

• Current assets / total liability

• Current assets - inventory / total liability

The formula for inventory turnover period in days is

• (Average inventory / cost of goods sold) X 365 days

• (Average inventory / sales) X 365 days

• (cost of goods sold / average inventory) X 365 days

• (sales/ cost of goods sold) X 365 days

The formula for accounts receivable turnover ratio in days is

• (Sales / accounts receivable ) X 365 days

• (cost of goods sold / accounts receivable ) X 365 days

• (Accounts receivable / sales) X 365 days

• (Sales / cost of goods sold ) X 365 days

The formula for accounts payable turnover ratio in days is

• (sales / accounts payable) X 365 days

• (Cost of goods sold / accounts payable) X 365 days

• (Accounts payable / sales) X 365 days

• (Accounts payable / cost of goods sold) X 365 days

The formula for Total Asset Turnover ratio is

• Net profit / Total assets

• Gross profit / Total assets

• Total assets / Sales

• Sales / Total Assets

The formula for debt ratio is

• Total assets / non-current liability

• Non-current liability / total assets

• Total liability / total assets

• Total assets / Total liability