Accountancy/Quick Reference/Accounting Ratios
Profit-Based Ratios
editx | 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
edit- 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