Calculations and Ratios of a Firm
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What calculations and ratios should a firm utilize to ensure it is competing at a high level? Why?
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Solution Summary
What calculations and ratios that a firm should utilize to ensure it is competing at a high level is determined.
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What calculations and ratios should a firm utilize to ensure it is competing at a high level? Why?
For this we have to use profitability and other efficiency ratios:
Net profit margin indicates the overall efficiency of the organization. This is calculated by Net profit/Sales, This ratio is measured to evaluate the efficiency of company in terms of profit. Besides management of the company, creditors and owners are also interested in the profitability of the firm.
The return on ...
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