Average Inventory is computed by dividing the sum of the merchandise inventory taken during one year by the number of such inventories.
Asset(/Stock) to Sales Ratio is used to compare how much in assets a company has relative to the amount of revenues the company can generate using their assets.
Quick Ratio aka Acid Test is a liquidity ratio that measures the ability to pay short-term liabilities with cash and assets quickly convertible to cash.
Break-Even Analysis equation shows the point in business where the sales equal the expenses.
Cost of Goods Sold is simply the difference between the cost of goods available for sale and the ending inventory.
Gross Profit is the difference between the net sales (or revenue) and the cost of goods or services sold. It is also known as the gross margin or Sales profit.
Gross Profit Percentage is the difference between the net sales and the cost of goods sold (or services rendered) divided by the net sales times a hundred.
Gross Profit Margin measures how much of each sales dollar is used to finance the direct inputs required to manufacture or merchandise the product sold.
Gross Margin Ratio equation is used to compute the profitability of a company on selling its inventory or merchandise.
Gross Margin Return on Investment [GMROI] calculation can be used to measure the performance the entire shop, but it is more effective if used for a particular department or category of merchandise.
Inventory Turnover Ratio reveals how many times inventory turns over (is sold and replaced) in a period.
Initial Markup % is the comparison of the amount of money, expressed as a percentage of initial cost, that a retailer adds to the price of goods.
Maintained Markup reveals the impact of markdowns (reductions) on the Initial Markup.