thakurnilu002

I need formulas for the following ratios: current ratios, days inventory, days accounts receivable, days accounts payable, times interest earned, total liabilities to tangible net worth, gross profit margin, operating profit margin, net profit margin, total asset turnover, return on total assets, return on total equity, cash flow from operations/ current maturities of long term debt.

The following ratios have been calculated for the Solar Tech Company. Analyze the profitability of Solar Tech Company.

2015 2016

Gross profit margin 37.0% 42.5%

Operating profit margin 4.7% 21.7%

Net profit margin 1.3% 17.2%

Cash flow margin 20.4% 25.9%

Explain the following, stating clearly their significance to the organisation, shareholders, and implications for investors.  

1. Gross Profit Margin

2. Net Profit Margin

No question

With reference discribe vertical value chain