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Home Accounting Ratios Analysis/Financial Ratios Analysis Accounting Ratios Formulas

Accounting Ratios Formulas:

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  1. Gross profit ratio =  (Gross profit / Net sales) x 100
  2. Net profit ratio =  (Net profit / Net sales) x l00
  3. Operating profit ratio = (Operating profit / Net sales) x 100
  4. Expense ratios = (Individual expenses / Net sates) x 100
  5. Operating (cost) ratio =  (Operating cost / Net sales) x 100
  6. Net profit to net worth ratio = (Net profit after interest and tax / Net worth) x 100
  7. Return on capital employed (ROI) = (Net profit before interest, tax / Capital employed) x 100

  8. Earning per share = net profit available for equity shareholders / Number of equity shares

  9. Dividends per share = Dividend amount / Number of equity shares

  10. Capital employed turnover ratio = Cost of sales / Capital employed

  11. Fixed assets turnover ratio = Cost of sales or sales / Fixed assets

  12. Working capital turnover ratio = Cost of sales or Net sales / Net working capital

  13. Inventory turnover ratio = Cost of goods sold / Average inventory

  14. Debtors (receivables) turnover ratio = Annual net credit sales / Average accounts receivable

  15. Debtors (receivables) collection period = Accounts receivables / Net credit sales per day

  16. Creditors turnover ratio = Net credit purchases / Average creditors

  17. Average credit period = Average account payables / Net credit purchases per day

  18. Current ratio = Current assets / Current liabilities

  19. Quick ratio/Acid test ratio = Quick assets / Current liabilities

  20. Debt Equity Ratio = Total long term debts / shareholder' funds

  21. Debt to net worth = Total long term debt / Shareholder's funds
  22. External-internal equity = External equity / Internal equity
  23. Debt vs. funds = total long term debts / Total long term funds
  24. Debt service ratio = Earnings before interest and taxes / Fixed interest charges
  25. Fixed assets ratio =Net fixed assets / Long-term funds
  26. Solvency (debt to total funds) ratio = Total liabilities / Total assets
  27. Reserves to capital ratio = Reserves / Capital
  28. Capital gearing ratio =Equity / Fixed interest hearing securities
  29. Proprietary ratio = Proprietor's funds / Total assets
More study material from this to

More study material from this topic:

Meanings, Nature and Usefulness of Ratios Analysis
Interpretation of Ratios
Important Factors for Understanding Ratios Analysis
Significance and Usefulness Ratios Analysis
Classification of Ratios
Analysis of Short Term Financial Position or Test of Liquidity
Current Ratio
Quick/Acid Test/Liquid Ratio
Absolute Liquid Ratio
Inventory/Stock Turnover Ratio
Debtors / Receivable Turnover Ratio
Creditors / Payables Turnover Ratio
Working Capital Turnover Ratio
Profitability Ratios
Gross Profit Ratio (GP Ratio)
Operating Profit Ratio
Net profit ratio (NP ratio)
Earnings Per Share Ratio
Operating ratio
Expense ratio
Solvency ratios - Test of Long Term Solvency
Debt-equity Ratio
Debt Service Ratio or Interest Coverage Ratio
Fixed Assets Ratio
Debts to Total Funds or Solvency Ratio
Reserves to Capital Ratio
Capital Gearing Ratio
Proprietary Ratio
Accounting Ratios Formulas
Limitations of Ratios Analysis



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