Accounts Ratios

Stock Turnover (Times)

Cost of Goods Sold÷ Average Stock

Stock Turnover (Days)

Average Stock ÷ Cost of Goods Sold × 365

Average Stock

Opening Stock + Closing Stock ÷ 2

Current Ratio

Current Assets ÷ Current Liabilities ( In ratio format)

Acid Test Ratio

Current Assets - Closing Stock ÷ Current Liabilities

Inventory Turnover (%)

Cost of Goods Sold ÷ Average Stock × 100/1

Debtors Turnover (Days)

Debtors ÷ Net Sales × 365

Creditor Turnover (Days)

Creditors ÷ Net Purchases × 365

Net profit margin (%)

Net profit ÷ Sales × 100

Gross Margin (%)

Gross profit÷ Sales × 100

Gross Markup (%)

Gross Profit ÷ Cost of goods sold × 100

Return on Captial Employed (ROCE ) #1

Net profit before interest and tax ÷ captail employed

Return on Capital Employed (ROCE) #2

Net profit before interest and tax ÷ Average Captial

Average Captial

Opening captial + Closing Captial ÷ 2