accounting ratios

Return on capital employed

Net profit plus interest over balance sheet total times 100 over 1

Return on equity funds

Net profit - preferred dividend% over issued ord shares + retained earnings times 100 over 1

Gross profit %

Gross profit over sales time 100 over 1

Net profit

Net profit over sales time 100 over 1

Mark up on cost

Gross profit over cost of sales times 100 over 1

Current ratio

Current asset over current liability

Acid test

Current asset minus closing stock over current liability

Gearing

Total debenture plus total preference issued shares over balence sheet total

Interest cover

Net profit plus interest over interest

Rate of stock turnover

Cost of goods sold over average stock

Period of credit given to debtors

Trade debtors over credit sales times 12 over 1

Period of credit take by us from creditors

Trade creditors over credit purchase times 12 over 1