"Trading and Profit & Loss Statement Ratio Analysis" contains a number of ratio calculations that are based on the Trading and Profit & Loss Account contained in Paper 005-015. These are the types of calculations that should be prepared each time a set of financial accounts is prepared so that the business person can understand what the figures really mean.
The paper analyses the key ratio analysis normally calculated on a Trading and Profit & Loss Statement including:
- percentage of sales increase
- stock turn
- days stock on shelf
- gross profit percentage
- mark up percentage
- key expenses as a percentage of sales
- net profit if operated as a "Sole Trader"
- net trading profit percentage of sales
- number of employees including management
- sales per person
- break even sales
- net trading profit before interest as a percentage of sales
