Accounting Ratios Formulas:

 Gross profit ratio = (Gross profit / Net sales) x 100

 Net profit ratio = (Net profit / Net sales) x l00
 Operating profit ratio = (Operating profit / Net sales) x 100
 Expense ratios = (Individual expenses / Net sates) x 100
 Operating (cost) ratio = (Operating cost / Net sales) x 100
 Net profit to net worth ratio = (Net profit after interest and tax / Net worth) x 100
 Return on capital employed (ROI) = (Net profit before interest, tax / Capital
employed) x 100
 Earning per share = net profit available for equity shareholders / Number of
equity shares
 Dividends per share = Dividend amount / Number of equity shares
 Capital employed turnover ratio = Cost of sales / Capital employed
 Fixed assets turnover ratio = Cost of sales or sales / Fixed assets
 Working capital turnover ratio = Cost of sales or Net sales / Net working capital
 Inventory turnover ratio = Cost of goods sold / Average inventory
 Debtors (receivables) turnover ratio = Annual net credit sales / Average accounts
receivable
 Debtors (receivables) collection period = Accounts receivables / Net credit sales
per day
 Creditors turnover ratio = Net credit purchases / Average creditors
 Average credit period = Average account payables / Net credit purchases per
day
 Current ratio = Current assets / Current liabilities
 Quick ratio/Acid test ratio = Quick assets / Current liabilities
 Debt Equity Ratio = Total long term debts / shareholder' funds
 Debt to net worth = Total long term debt / Shareholder's funds
 External-internal equity = External equity / Internal equity
 Debt vs. funds = total long term debts / Total long term funds
 Debt service ratio = Earnings before interest and taxes / Fixed interest charges
 Fixed assets ratio =Net fixed assets / Long-term funds
 Solvency (debt to total funds) ratio = Total liabilities / Total assets
 Reserves to capital ratio = Reserves / Capital
 Capital gearing ratio =Equity / Fixed interest hearing securities
 Proprietary ratio = Proprietor's funds / Total assets