GP Ratio/RONA/Operating Profit Margin
princess
Registered Posts: 80 Regular contributor ⭐
Hi guys
Please could some one tell me the link of these 3 ratios and also the formula for RONA??
I will be sooooo grateful!!
Thanks
Please could some one tell me the link of these 3 ratios and also the formula for RONA??
I will be sooooo grateful!!
Thanks
0
Comments
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Op profit margin x Asset Turnover = RONASandy
sandy@sandyhood.com
www.sandyhood.com0 -
RONA = Operating Profit x 100
RONA = Net AssetsSandy
sandy@sandyhood.com
www.sandyhood.com0 -
Thanks for that sandy, but i am still a bit confused! Could you please explained why these could be linked? I bet you have been asked this hundreds of times so i am really sorry!!!
Thank you0 -
Write out the formulae under each
When you multiplied fractions at school, did you cancel out if the bottom of one fraction was the same as the top of the other?Sandy
sandy@sandyhood.com
www.sandyhood.com0 -
I went to school 10 years ago!! hehe!! I cant remember what i did last week!!
I have just looked through a text book and it has got:
OP OP −sales−(crossed out)
___ = ____________ x
Fixed & net current assets −sales− (crossed out) Fixed & netcurrent assets
But...I just dont get what its telling me. I am really sorry, stressing out big time for monday.0 -
It didnt come out properly0
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operating profit x 100 x sales revenue = operating profit x 100
xxxsales revenue xxxxxxxxnet assetsxxxxxxxnet assetsSandy
sandy@sandyhood.com
www.sandyhood.com0 -
If you cross out the two sales revenue amounts you have the RONA formula leftSandy
sandy@sandyhood.com
www.sandyhood.com0
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