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| Profit/Sales (%) | This represents the percentage of sales left as profits or losses before tax. In general, if profitability is the main driving force the higher the result the better. It should not however, be taken in isolation . Also known as the Profit Margin. |
| Profit/Capital Employed (%) | Often used as a primary measure of company performance. This ratio is taken as an indication of how much profit a business yields relative to the money invested. Also referred to at Return on Capital. |
| Profit/Total Assets (%) | Shows as a percentage the value of the pre-tax profits in proportion to the value of total assets. |
| Profit/Shareholders funds (%) | Expresses the proportion of pre-tax profit made in relation to the value of the shareholders funds. |
| Sales/Total Assets (%) | Shows as a percentage the value of sales in proportion to the value of total assets. Also referred to as Asset Utilisation. |
| Sales/Fixed Assets ® | Shows as a ratio the value of sales in proportion to the value of fixed assets. |
| Sales/Total Fixed Assets (%) | Measures the level of sales generated in relation to total fixed assets. This result will be affected by the accuracy of the net book value of the assets. |
| Working capital/Sales (%) | Surplus or deficiency of funds from normal trading activities in relation to its size measured by sales. |
| Stock Turnover ® | Turnover divided by stocks held. Generally speaking, the number of times stock is renewed each year. |
| Credit Period (days) | The number of days, on average, for the company to collect trade debt. Calculated by dividing Trade Debtors by Sales and multiplying by 365 days. |
| Creditor days (days) | The number of days it takes the company to pay trade creditors. This ratio provides an indication of the amount of credit given to the business by its suppliers. The formulae is trade creditors divided by sales multiplied by 365 days. |
| Current ratio ® | This represents the number of times the business' short term assets cover its current liabilities. It measures the ability to meet its day to day commitments. |
| Liquidity ratio ® | This represents the number of times a customer's quick assets can cover its current liabilities. Quick assets being defined as current assets less stock. This is taking into account the fact that it takes a reasonable amount of time for stock to be converted into cash. |
| Total Debt/Net Worth (%) | A way of measuring the "gearing" or "leverage" of a company, by comparing total loans (short and long term) to net worth. |
| Bank Overdraft & Long term liabilities/Net Worth | This ratio represents the relationship between the bank overdraft & long term borrowings and other amounts due over 12 months, against the net worth. |
| Shareholders funds/Total Liabilities ® | This represents the business's liabilities as a ratio of shareholders' funds. This ratio provides a measure of protection given by shareholders to other parties who contribute funds. e.g. banks, creditors etc. A falling ratio indicates increasing financial risk. |
| Long Term Debt/Net Worth (%) | This represents the debt outstanding beyond 12 months in relation to net worth. |
| Long term liabilities/Net Worth ® | Ratio of liabilities due over a year in relation to the net worth. |
| Interest/Pre-Interest Profit (%) | Sometimes referred to as Income gearing - this measures the proportion of pre-interest profit which is required to service debt. |
| Total Debt/Working Capital ® | A gearing measurement which compares total borrowings with the surplus or deficit of funds from normal trading activities. |
| Bank Overdraft & Long term liabilities/Working Capital ® | Ratio of bank overdraft and liabilities due over 12 month period in relation to the working capital of the company |
| Bank O/dft & Long term liabilities/Total assets | This indicates the relationship between debt and asset value of the company. |
| Average employee remuneration (GBP) | Employee remuneration divided by the average number of employees. |
| Wages/Sales (%) | Indicates the amount of sales revenue expended on employees' pay, showing the marginal cost of employment. |
| Profit /Employee (GBP) | Amount of profit before tax made per employee. |
| Sales/Employee (GBP) | This is often used as a measurement of productivity. It indicates the amount of sales revenue generated by each employee. |
| Capital Employed/Employee (GBP) | Capital Employed per employee. |
| Fixed assets/Employee (GBP) | Fixed Asset investment per employee. |
| Total assets/Employee (GBP) | Total Assets in comparison to the number of employees. |
| Profit/Value added (%) | Pre-tax profit as a percentage of value added. |
| Value added/Sales (%) | Sales figure as a percentage of value added measurement. |
| Value added/Employee (GBP) | Employees in relation to the value added. |
| Value added/Employee Remuneration (GBP) | Employee's remuneration in relation to the value added. |
| Creditors/Debtors ® | The ratio of trade creditors to trade debtors. |
| Debtors/Total Assets (%) | Trade debtors in relation to the total assets of the company. This measures the value of moneys owed in relation to company's asset base. |
| Current Liabilities/Stock ® | Liabilities to be paid within 12 months expressed as a ratio in relation to value of stocks. |
| Export/Sales (%) | Amount of sales revenue attributable to export business as a percentage of total sales. |
| Sales/Audit fees ® | Comparison of sales revenue to cost of audit. |
| Total assets to audit fees ® | Comparison of total assets to audit fees. |
| Shareholders' funds/Total assets (%) | The relationship of the business's assets to shareholders funds. |
| Sales/Capital Employed ® | This measures the amount of revenue generated by a business in relation to the level of investment made. Referred to as Capital Utilisation and when combined with profit margin gives the principal measure of profitability, return on capital. |
| Stocks/Working Capital (%) | The value of stocks represented as a percentage to the working capital of the company. |
| Current assets/Total assets (%) | Percentage of current assets against long term assets indicates where the asset base rests. |
| Profit/Current Liabilities (%) | Pre-tax profit in relation to liabilities due within the next 12 months. |
| Sales/Current liabilities ® | Sales expressed as ratio to those liabilities due within next 12 months. |
| Net Cash/Current liabilities | Net cash (defined as cash less bank overdraft) expressed as a ratio to those liabilities due within the next 12 months. |
| Liquid assets/Total assets (%) | Percentage measurement of liquid assets against total asset base - good indicator of which assets could be quickly realised. |
| Net Worth/Total assets -Intangibles (%) | This measures the accounting value of the company against total assets. Intangibles are discounted as they cover perceived value such as goodwill, R&D development, patents, trademarks etc. |
| Net Worth/Total fixed assets (%) | This measures the net worth of the company against those assets whose value may be great, but are not necessarily quick to liquidise. Fixed assets normally make up a far proportion of total assets. |
| Net Worth/Current Liabilities (%) | This measures the short-term percentage risk against the value of the company. |
| P&L Acct Reserve/Net Worth (%) | Accumulated profits/losses as a percentage of shareholders' funds less intangible assets. |
| Revaluation Reserve/Shareholders funds (%) | This takes into account revaluation of investments or properties and measures it against the shareholders' funds. |
| Bank Overdft/Current Assets (%) | The current bank overdraft as a percentage of short term assets. A good measurement for using whether these assets cover the bank overdraft. |