Profit-Based Ratios

x	Gross Profit	Operating Profit (PBIT)	Net Profit	Profit After Tax
${\displaystyle {\frac {100\%}{Sales}}}$	Gross Profit Margin %	Operating Profit Margin %	Net Profit Margin %
${\displaystyle {\frac {100\%}{Equity+Debt}}}$		ROCE %
${\displaystyle {\frac {100\%}{Equity}}}$				Return on Equity %
${\displaystyle {\frac {1}{Debt}}}$		Interest Cover
${\displaystyle {\frac {1}{No.ofOrdinaryShares}}}$				Earnings per Share

The table shows how to calculate the ratios by multiplying the row and column headings together. e.g.

Gross Profit Margin % = ${\displaystyle {\frac {GrossProfit\times 100\%}{Sales}}}$

Earnings per Share = ${\displaystyle {\frac {ProfitafterTax}{No.ofOrdinaryShares}}}$

Also

Sales = Turnover

Equity = Ordinary Share Capital + Reserves

Debt = Long Term Liabilities = Non-Current Liabilities

Capital Employed = Equity + Debt

Asset Turnover = Sales / (Fixed Assets + Net Current Assets)

Fixed Assets + Net Current Assets = Equity + Debt (Accounting Equation)

ROCE = Operating Profit Margin x Asset Turnover