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• 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

Officers and Owners Salary by Net Sales

What it measures

This ratio (expressed as a percentage) relates owner salaries to net sales.  It is good to compare this to industry averages.

How is the ratio calculated

Divide officers and owners salary by net sales and multiple by 100.  For example, if the total salaries for the owners and officers is 145,000 and sales are 3,000,000 then the ratio is calculated

          145,000
        ----------- * 100 = 4.83
        3,000,000

Target

The target for this ratio is 4.85