Click Ratio Name For More Information

• Current Ratio
• EBIT / Interest
• Sales / Receivables
• Sales / Net Fixed Assets
• Cost of Sales / Inventory
• Quick Ratio
• Debt / Worth
• Sales / Working Capital
• Cost of Sales / Payables
• Depreciation / Net Sales
• Officers & Owners Salaries / Net Sales
• Fixed Assets / Tangible Net Worth
• % Profit Before Taxes / Tangible Net Worth
• % Profit Before Taxes / Total Assets
• Net Profit + Depreciation / Current Portion Long Term Debt

Depreciation / Net Sales

What it measures

This ratio (expressed as a percentage) relates depreciation to net sales.  It is good to compare to the industry average.

How is the ratio calculated

Divide depreciation and amortization by net sales and multiple by 100.  For example, if your depreciation expense for the year is 35,000 and the net sales for the year is 3,000,000 then the ratio is calculated

           35,000
        ----------- * 100 = 1.17
        3,000,000

Target

The target for this ratio is 1.00