GP Ratio/RONA/Operating Profit Margin
Options
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

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

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
Categories
 All Categories
 1.2K Books to buy and sell
 2.3K General discussion
 12.4K For AAT students
 273 NEW! Qualifications 2022
 147 General Qualifications 2022 discussion
 9 AAT Level 2 Certificate in Accounting
 48 AAT Level 3 Diploma in Accounting
 69 AAT Level 4 Diploma in Professional Accounting
 8.8K For accounting professionals
 23 coronavirus (Covid19)
 269 VAT
 91 Software
 271 Tax
 134 Bookkeeping
 7.1K General accounting discussion
 196 AAT member discussion
 3.8K For everyone
 38 AAT news and announcements
 345 Feedback for AAT
 2.8K Chat and offtopic discussion
 578 Job postings
 16 Who can benefit from AAT?
 36 Where can AAT take me?
 42 Getting started with AAT
 26 Finding an AAT training provider
 48 Distance learning and other ways to study AAT
 25 Apprenticeships
 66 AAT membership