ACCOUNTING RATIOS
INVESTMENT RATIOS
Return on capital employed Assets employed
Return on equity Ordinary share capital and reserves
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Earnings per share Number of ordinary shares
Price earnings ratio Earnings per share
Dividend cover Dividend
Dividend yield Profit before interest x 100%
Earnings x 100%
Earnings
Market price
Earnings
Dividend x 100%
Market value of ordinary shares
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PROFITABILITY RATIOS
Gross profit margin Sales
Net profit margin Sales
ACTIVITY RATIOS
：
Asset turnover Assets employed
Stock holding period Cost of sales
Debtors collection period
Gross profit x 100%
Net profit x 100%
Turnover
Inventory x 365
Trade receivables x 365
Credit sales
Creditors payment period Trade payables x 365 <
Credit purchases
LIQUIDITY RATIOS
Current ratio Current liabilities
Quick asset ratio Current liabilities
GEARING
Gearing ratio Debt + equity
Interest cover Interest charges
Current assets
Current assets - inventory
Debt x 100%
Profit before interest
