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Joined: Aug 2008
Posts: 41
Rookie
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OP
Rookie
Joined: Aug 2008
Posts: 41 |
Normally I am good at calculating ratios but this is throwing me off.
1. For profit margin it is normally = net income/sales(revenue) but when the company is at a net loss would it be net loss(negative number)/sales(revenue)?
2. times interest earned ratio is = to EBIT/interest but when the EBIT what about when negative this is number I am dealing with company operating profit (EBIT) =7,493,000 Interest expense= 38,000 formula =-7493000/38000= -197.18 (rounded) this does not sound right
any help would be appreciated
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