Accountancy/Quick Reference/Accounting Ratios

Profit-Based Ratios
The table shows how to calculate the ratios by multiplying the row and column headings together. e.g.

Gross Profit Margin % =  $$\frac{Gross Profit \times 100\%}{Sales} $$

Earnings per Share =  $$\frac{Profit after Tax}{No. of Ordinary Shares} $$

Also

 * Sales = Turnover


 * Equity = Ordinary Share Capital + Reserves


 * Debt = Long Term Liabilities = Non-Current Liabilities


 * Capital Employed = Equity + Debt


 * Asset Turnover = Sales / (Fixed Assets + Net Current Assets)


 * Fixed Assets + Net Current Assets = Equity + Debt (Accounting Equation)


 * ROCE = Operating Profit Margin x Asset Turnover