PROFITABILITY RATIOS

1. Return on shareholders’ fund OR return on equity (ROE)

= net profit after tax / (average share capital + reserves) X 100

2. Operating profit margin / Return on sales = Operating profit / sales X 100

3. Gross profit margin = Gross profit / Sales X 100

EFFICIENCY RATIOS

Asset turnover = Sales / average assets

LIQUIDITY RATIOS

SOLVENCY/GEARING/LEVERAGE RATIOS
Debt to equity = total debt/total equity
Debt to assets = total debt / total assets
Interest coverage ratio = operating profit / interest expense