Question

From the following Statement of Profit and Loss of Dixon Ltd, for the year 2014 – 15, calculate (up to two decimal places):

(i) Trade Receivables Turnover Ratio 

(ii) Inventory Turnover Ratio 

(iii) Net Profit Ratio 

(iv) Operating Profit Ratio

Answer 1

(i) Trade receivable turnover ratio = Net credit revenue from operation / Avg. Trade receivable