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
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
