Teambuilding Manager

SUMMARY OF FINANCIAL ACCOUNTING RATIO

PROFITABILITY RATIO:

|Financial Ratio |Formula |Measurements |

|Return on Total Assets |Operating profit before income tax + interest|Measures rate of return earned through operating total assets |

| |expense/ Average total assets |provided by both creditors and owners |

|Return on ordinary |Operating profit & extraordinary items after |Measures rate of return earned on assets provided by owners |

|shareholders’ equity |income tax minus Preference dividends /  | |

| |Average ordinary shareholders’ equity | |

|Gross Profit Margin |Gross Profit / Net Sales |Profitability of trading and mark-up |

|Profit Margin |Operating profit after income tax / Net Sales|Measures net profitability of each dollar of sales |

| |Revenue | |

MARKET BASED FINANCIAL RATIO:

|Financial Ratio |Formula |Measurements |

|Earnings per share |Operating profits after income tax less |Measures profit earned on each ordinary share |

| |Preference dividends / Weighted average | |

| |number of ordinary shares issued | |

|Price-earnings ratio |Market price per ordinary share / Earnings...