Summary Accounting: Company ratios

ACCOUNTING RATIOS:

No. Ratio Formula


1 Gross profit on cost of sales GP/COS x100


2 Gross profit on sales GP/sales x100


3 Operating expenses on sales OpE/sales x100


4 Operating income on sales OpI/sales x100


5 Net profit after tax on sales NPAT/sales x100


6 Current ratio Current assets : Current liabilities


7 Acid-test ratio Current assets – Inventory : Current liabilities


8 Rate of stock turnover COS/average stock x365


9 Stock-holding period Average stock/COS x365


10 Average debtors’ collection Average debtors/credit sales x365


11 Average creditors payment Average creditors/credit purchases x365


12 Solvency ratio Total Assets : Total Liabilities


13 Debt equity ratio Long-term Liabilities: Shareholders Equity


14 Return on capital employed Net Profit before interest and tax/average capital employed x100


15 Return on shareholders’ equity Net profit after tax/average shareholders’ equity x100


16 Earnings per share Net profit after tax/number of issued shares x 100cents


17 Dividends per share Total dividends/number of issued shares x100cents


18 Net asset value per share Ordinary shareholders equity/number of issued shares x100cents