[<< wikibooks] Accountancy/Quick Reference/Accounting Ratios
== Profit-Based Ratios ==
The table shows how to calculate the ratios by multiplying the row and column headings together. e.g.
Gross Profit Margin % =  
  
    
      
        
          
            
              G
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              s
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              ×
              100
              %
            
            
              S
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              s
            
          
        
      
    
    {\displaystyle {\frac {GrossProfit\times 100\%}{Sales}}}
  
Earnings per Share =  
  
    
      
        
          
            
              P
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              f
              i
              t
              a
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              e
              r
              T
              a
              x
            
            
              N
              o
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              o
              f
              O
              r
              d
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              a
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              S
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    {\displaystyle {\frac {ProfitafterTax}{No.ofOrdinaryShares}}}
  


== Also ==
Sales = TurnoverEquity = Ordinary Share Capital + ReservesDebt = Long Term Liabilities = Non-Current LiabilitiesCapital Employed = Equity + DebtAsset Turnover = Sales / (Fixed Assets + Net Current Assets)Fixed Assets + Net Current Assets = Equity + Debt (Accounting Equation)ROCE = Operating Profit Margin x Asset Turnover