411 REFERENCE · Wikibooks
Accountancy/Quick Reference/Accounting Ratios
Reference material by Wikibooks contributors. This retains its source identity and is not 411 news reporting.
Profit-Based Ratios
x Gross Profit Operating Profit (PBIT) Net Profit Profit After Tax Gross Profit Margin % Operating Profit Margin % Net Profit Margin % ROCE % Return on Equity % Interest Cover Earnings per Share
The table shows how to calculate the ratios by multiplying the row and column headings together. e.g.
Gross Profit Margin % =
Earnings per Share =
Also
Sales = Turnover
Equity = Ordinary Share Capital + Reserves
Debt = Long Term Liabilities = Non-Current Liabilities
Capital Employed = Equity + Debt
Asset Turnover = Sales / (Fixed Assets + Net Current Assets)
Fixed Assets + Net Current Assets = Equity + Debt (Accounting Equation)
ROCE = Operating Profit Margin x Asset Turnover