Ratios Formulas ➡ Gross profit ratio = (Gross profit / Net sales) x 100 ➡ Net profit ratio = (Ne

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 ➡ 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 ➡ 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