micro finance ratio calculations

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Profitability Ratios 2012 Gross profit Margin = gross profit/ sales Operating Profit Margin = operating profit/sales Pretax Profit Margin = ebt/sales Net Profit Margin =net profit/sales Operating Expense ratio =operating expense/sales Return on Investment Return on assets =net profit/ave total assets Growth of Income (%) Growth of Net Profit (%) Net Assets Growth (%) Growth of Loans (%) Return on Assets (%) Dependent Variables Years in business Profit for the year Number of emploees Non performing loans (over 12 months) Non performing loans as a % income

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This will enable ration calculations in Micro finance institutions.

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Page 1: Micro finance Ratio Calculations

Profitability Ratios 2012Gross profit Margin = gross profit/ salesOperating Profit Margin = operating profit/salesPretax Profit Margin = ebt/salesNet Profit Margin =net profit/salesOperating Expense ratio =operating expense/sales

Return on Investment

Return on assets =net profit/ave total assets

Growth of Income (%) Growth of Net Profit (%) Net Assets Growth (%) Growth of Loans (%) Return on Assets (%)

Dependent VariablesYears in businessProfit for the yearNumber of emploees

Non performing loans (over 12 months)Non performing loans as a % income

Page 2: Micro finance Ratio Calculations

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