Formula
to calculate quality ratio:
Quality
Ratio = 1 - (sales returns and allowances / sales).
Quality
ratio definition and explanation:
The quality
ratio, or product quality ratio, indicates the extent of acceptance (in dollar
terms) of the product or services sold.
The
analyst should look to see whether the quality is
increasing or decreasing.
A
decrease in the quality ratio indicates declining product quality, which may
lead to decreasing sales or profit margins.
The quality ratio is included in the financial
statement ratio analysis spreadsheets highlighted in the
left column, which provide formulas, definitions,
calculation, charts and explanations of each ratio.
The quality ratio is listed in our other
accounting ratios.
| The quality
ratio and other ratios are key to
understanding financial statements. Our
ratio calculation spreadsheets reduce time
and effort in calculating decision making
ratios. They reduce risk for lenders and
investors and enable owners, managers and
consultants to increase productivity and
business profits. These spreadsheets are
bargain priced to provide a huge return
on investment. Click
here for more details. |
Spreadsheets to
calculate ratios (includes formulas, definitions,
explanations and charts):
See list
of ratios , or the financial statement ratio
analysis spreadsheets which are not highlighted in the
left column, to see which other ratios our spreadsheets
calculate, define and explain.
Click here
to order excel
accounting spreadsheet to calculate 15 ratios with
formulas, definitions, calculations, charts, and
explanations for each ratio.
The Quality Raio may
be included in our
custom 1, 3 or 5 period financial
statement ratio analysis spreadsheet.
Order free 3 ratio
calculator spreadsheet. Current, quick and
debt-to-equity ratios with formulas, calculations,
charts and explanations. Email
us at 3ratios@bizwiz.ca. | 
