Question: hi i m doing a calculating based questions question 1...
I m doing a calculating based questions.
Return on Total Assets: EBIT/Average Total asset
I need to calculate the Average total asset but there is no previous year total asset mentioned so in this case what should I do to calculate the Average total assets?
Shall I take the Total asset of the current year and use the formula to calculate it or is there any other way I can get the information.
Inventory Turnover ratio: COGS/Average Inventory
Here, I m confused about how to calculate average inventory where opening inventory and closing inventory is not provided in P/L statement but only inventory value is provided in the Balance sheet? Where I will calculate this one?
Return on total Owners Equity: Net Income/Average Owner's Equity
I m confused here to how to calculate the Average owner's equity as I dont have any available information regarding the previous owners equity but hence It has only provided Total owners equity in Balance Sheet?
Can you please tell me What is formula of Net Profit Ratio?