ratio formulae

P return on capital employed

profit before interest and tax x 100 = percent

capital employed (equity + net debt)

P return on shareholders funds

net profit for period x 100 = percent

capital shares + reserves

P gross profit margin

gross profit for period x 100 = percent

revenue

P operating profit margin

operating profit for period x 100 = percent

revenue

P net profit margin

net profit for period x 100 = percent

revenue

E net asset turnover

revenue = number of times

capital employed

E non current asset turnover

revenue = number of times

non current assets

E inventory turnover

cost of sales = number of times

inventory

E trade receivable days

trade receivables x 365 = days

revenue

E trade payable days

trade payables x 365 = days

purchases / cost of sales

E inventory days

inventory x 365 = days

cost of sales

L current ratio

current assets : 1

current liabilities

L quick ratio

current assets - inventory : 1

current liabilities

S gearing

net debt x 100 = percent

equity

S interest cover

profit before interest and tax + investment income x 100 = percent

finance costs

dividends yield

dividends per share x 100 = percent

current market price per share

dividends cover

earnings per share = number of times

dividends per share

I earnings per share

earnings

ordinary shares

I price to earnings

current market price per share

EPS