Proprietor`s Equity Capital + profit retained / overdrawn Net Capital Employed Proprietor`s equity + Long-term Liabilities Non-Current Assets

+ working capital Gross Capital Employed Proprietor`s equity + Total liabilities Total Assets Working Capital Current Assets Current Liabilities 1. Rate of Turnover/Stock Turnover or or

COGS/AS COGS = Cost of goods sold (Opening stock + Purchases + Carriage in Returns Out Closing Stock) AS = Average stock (Opening stock + Closing stock divide 2) 2. Gross Profit Margin

Gross profit/Net sales multiply by 100% 3. Operating Profit Margin

Operating profit / Net sales multiply 100% 4. Net profit Margin

Net profit/Net sales multiply by 100% 5. Debtors Turnover

Net Sales / Debtors 6. Return on Net Capital Employed

Operating profit /Net Capital Employed multiply by 100% (interest for loan is also recovered from this investment) 7. Return on Equity Employed

Net profit / Proprietor`s Equity multiply 100% (this is payback for proprietor`s investment in this business)

8.

Current Ratio

Current assets/current liabilities 9. Liquidity Ratio (Quick Ratio/Acid test)

(Debtors + bank + cash) or (Current Assets Stock prepayment) / Current liabilities 10. Debtors days

(Debtors/Net Sales) multiply by 365 11. Creditors days

(Creditors/Purchases) multiply by 365 *Purchases = Purchases + Carriage in Returns out 12. Stock days

(Average stock/ Cost of Goods Sold) multiply by 365 13. Fixed Interest Cover

Operating profit / interest 14. Debt Ratio

Total liabilities / Total Assets 15. Gearing Ratio or

Long-term Liabilities / Proprietor`s Equity Long-term Liabilities / Equity + Long-term Liabilities 16. Proprietory Ratio

Equity/Total Assets 17. Return on Total Assets

(Operating profit / Total Assets) multiply by 100% 18. Net Assets Turnover

Sales/Net Assets (NCA+CA-CL) 19. Fixed Assets Turnover

Sales/Fixed assets

20.

Operating Expenses to Sales Ratio

(Operating expenses / Net sales ) X 100%

21.

Sales to Net Current Assets Turnover

Sales/Net current assets or working capital

Liquidity Ratios Current Ratio Acid Test/liquidity ratio Debtors turnover Debtors days Creditors days

Stability Ratios Fixed Interest cover Debt ratio Gearing ratio Proprietory ratio

Profitabilities Ratios Return on Net Capital Employed Return on Equity Employed Gross profit margin Operating profit margin Net profit margin Return on total assets Net assets turnover Operating expenses to sales ratio

Activity or Efficiency/Trading performance Ratios Debtors day Creditors days Stock days Fixed assets turnover Rate of turnover Gross profit margin Net profit margin Sales to net current assets ratio Management performance Ratios Rate of turnover Debtors turnover Return on net capital employed Return on equity employed