Accounting Ratios

ROCE

net profit+int /cap emp x 100

ROSF

net profit -tax and pref dividend/ordinary share p&l balance x 100 %

Gross Profit Percentage

Gross profit x 100 / sales %

gross profit mark up

gross p x 100/cos

Current Ratio

current assets - current liabilities. 2:1

acid test ratio

Current Assets - close Stock / Current Liabilities. 1:1

fixed interest capital to total capital

Loans + Debentures + Preference Shares/Capital Employed %

fixed interest capital to equity capital

Loans + Debentures + Preference shares/ ordinary share capital issued + reserves. %

Interest cover

net profit +int tax/interest. times

Stock Turnover

Cost of sales/average stock

average stock

(opening stock + closing stock) / 2 €

Average period of credit given to debtors

Trade Debtors x (12 or 52 or 365) / Credit Sales. months days years.

Average period of credit received from creditors

Creditors x 12 or 52 or 365 /months in q

earning per share

net income - preferred dividends x 100 / number of ordinary shares issued. cent

Price Earning Ratio

market price of one ordinary share/earnings per share. years

Dividend per Ordinary Share

Ordinary dividends x 100/ number of ordinary shares issued. cent

Dividend cover

net profit - tax and pref dividend/ordinary dividend. times

dividend yield

dividend per ordinary share /market value x 100. %

m

Projected market value of one ordinary share

Price earnings ratio x earnings per share €

Shareholder funds

Ordinary shares+p&l balance