Three types of ratios:profitability ratio liquidity ratio investment ratio ROCE=profit on ordinary activities before interest and taxation

capital employed capital employed=shareholders funds plus creditors; amounts failing due after more than one year net profit percentage=profit before tax-into 100 sales gross profit percentage = gross profit sales liquidity ratios -current ratio = current assets current liabilities -quick ratio = current assets-stock current liabilities debtors day ratio = debtors x 365/52/12 credit sale creditors turnover = creditors credit purchase stock turnover = cost of goods sold average stock were-A.S = op.stock+closing stock 2 profit after tax minus preference dividends total no. of ordinary shares

dividend per share = total dividend total number of ordinary shares dividend cover = earning per share dividend per share price earning ratio = market price per share earning per share dividend yield = dividend on the share for the year market value of the shar