Ratios - Leaving Certificate Accounting Ordinary Level

Acid Test Ratio (Quick Ratio)

Current Assets - Closing Stock/Current Liabilities

Current Ratio (Working Capital Ratio )

Current Assets/Current Liabilities

Return on Capital Employed (ROCE)

Profit after Interest has been paid/Capital Employed x 100/1

Net Profit Margin (Percentage)

Net Profit/Sales x 100/1

Gross Profit Margin (Percentage)

Gross Profit/Sales x 100/1

Gross Profit Mark-Up

Gross Profit/Cost of Sales x 100/1

Rate of Stock Turnover

Cost of Sales/Average Stock

Average Stock

(Opening Stock + Closing Stock)/2

Period of Credit given to Debtors (Months)

Debtors/Credit Sales x 12/1

Period of Credit given to Debtors (Days)

Debtors/Credit Sales x 365/1

Period of Credit given by Creditors (Days)

Creditors/Credit Purchases x 365/1

Period of Credit given by Creditors (Months)

Creditors/Credit Purchases x 12/1