Ratios

Profitability Ratios

ROCE, ROSF, Gross P Margin, Net P Margin

Return on Capital Employed

(Net Profit (before interest and tax)x100)/Capital Employed

In %

Return on Shareholders’ Funds

(Net Profit (after tax and pref div) x100)/Shareholders’ Funds

In %

Gross Profit percentage margin (useless)

(Gross Profit x100)/Sales

In %

Net Profit percentage margin (useless)

(Net Profit x100)/Sales

In %

Efficiency Ratios (kinda useless)

Fixed Asset Turnover, Current Asset Turnover

Fixed Asset Turnover (kinda useless)

Sales/fixed assets

Times

Current asset turnover (kinda useless)

Sales/current assets

Times

Liquidity Ratios

Current Ratio, Acid Test Ratio

Current ratio

Current Assets: Current Liabilities

Acid Test Ratios

Current assets less closing stock: current liabilities

Gearing Ratios

Fixed Interest Capital to total capital, Fixed Interest Capital to equity capital, Interest Cover

Fixed Interest Capital to total capital

(Gearing)

(Debt Capital which is )[loans+debentures+pref shares]/ Capital Employed

Gearing 2 (Fixed Interest Capital to Equity Capital) (Debt to Equity)

(Debt Capital which is )[loans+debentures+pref shares]/ ordinary (equity) share capital issued + reserves

Interest Cover

Net P before int and tax/ Interest

Activity Ratios

Stock Turnover, Average Stock, APoCgtD, APoCgtC

Stock Turnover

Cost of sales/average stock

Average stock

(Opening stock+closing stock)/2