This page contains graphics images of the main and basic ratio analysis equations or formulae that accountants and analysts use for ratio analysis. Feel free to download them for your own use by cutting and pasting from here ... don't forget where you got them from!

New Ratio Analysis Equations

Profitability
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Retained Profit Margin
Profit Mark up
PBIT
PBT

Rate of Return
Return on Capital Employed (ROCE)
Return on total Assets (ROTA)
Return on Fixed Assets (ROFA)
Return on Working Capital (ROWC)

Working Capital Management

Liquidity
Current Ratio
Acid Test

NOTES: Current Ratio = Working Capital Ratio
Acid Test Ratio = Quick Ratio

Asset Usage
Total Asset Turnover
Stock turnover
Debtors Turnover
Creditors Turnover
Fixed Asset Turnover
Capital Employed Turnover
Working Capital Turnover

NOTE in the US stock = inventory, debtors = accountsreceivable, creditors = accounts payable

Alternative formulae:

Stock Turnover

Debtors Turnover

Gearing
Gearing 1
Gearing 2

NOTE: in the US known as leverage

Investor
Earnings per Share
Dividends per Share
Dividend Yield
Dividend Cover
P/E (Price Earnings)
Interest Cover

 

© Duncan Williamson
27 January 2004