Name : DEKY OKTARY PRATAMA

NPM : C0C019042
Majors and Class : D3 Akuntansi / A

8. some other common rations are given below. Match the rations with the
formulas (1-7) and the descriptions (a-g).
Gross profit margin •Earnings per share •Return on equity •Average Interest rate •Debt/equity
ration •Inventory turnover •Price/ earnings ratio

1. Interest expenses Average Interest rate

Liabilities – accounts payable
2. Net income – dividends in preferred stock Earnings per share
Average shares
3. Net income Return on equity
Shareholders equity
4. Total liabilities Debt/equity ration
Shareholders equity
5. Revenue – cost of goods sold Gross profit margin
Revenue
6. Cost of goods sold Inventory turnover
Average inventory
7. Market value per share Price/ earnings ratio
Earnings per share

a. Gives the company’s pricing policy and mark-up margins. An adequate gross margin
allow a company to pay its expenses, and then expend. Gross profit margin
b. Determines the average interest rate at which a company borrows funds. Average
Interest rate
c. Compares the current market price with earnings to calculate if a stock is over or under
valued. Use as a prediction or exprectation of future performance. Price/ earnings ratio
d. Indicates the return a company get on the owners investment. Companies that make high
returns often do not require more debt investments. Return on equity
e. Shows the turnover of inventory, and can be compared against sales figures, to show the
demand for the company’s products. Inventory turnover
f. Indicates what proportion of equity and debt an enterprise uses to finance its assets. A
more stringent test is to use just the long-term debt. Debt/equity ration
 g. Calculates the profit made on a per-share basis. This is quoted by U.S. publicly held
companies in their financial statements. Earnings per share

9. Use words from the descriptions above to complete the table. The first
one is done for you.

Verb Noun
To predict Prediction
To pay 1 Payment
To compare 2 Comparison
To calculate 3 Calculation
To expenct Expectation 4
To indicate 5 Indication
To expand 6 Expension
To perform Performance 7

Now use verbs or nouns from above to complete the sentences. You may need to change the
from.

a. The figure are a little different to what we were expectation.

b. The problems in the middle east have made it really difficult to predict next year’s
turnover.
c. I think there are some mistakes in the calculation.
d. The fund comparison much better last year. This year has been very disappointing.
e. The expension into eastern Europe looks good.
f. We need to make sure that our customers pay us on time.