Accounting & Financial Ratio Calculator

Calculate Gross Profit Margin, Profit Margin, ROCE, Current Ratio, and Liquid Ratio instantly with full Cambridge Mark Scheme step-by-step solutions.

1. Income Statement Data

Revenue / Revenue Sales ($)

Gross Profit ($)

Profit for the Year / Net Profit ($)

2. Statement of Financial Position Data

Closing Inventory ($)

Other Current Assets (Excl. Inventory) ($)

Current Liabilities ($)

Capital Employed ($)

Cambridge Mark Scheme Formula Guide

Ratio Category	Ratio Name	Official Formula	Standard Mark Scheme Format
Profitability Ratios	Gross Profit Margin	$$\frac{\text{Gross Profit}}{\text{Revenue}} \times 100$$	Expressed as a percentage ($\%$)
	Profit Margin	$$\frac{\text{Profit for the Year}}{\text{Revenue}} \times 100$$	Expressed as a percentage ($\%$)
	ROCE	$$\frac{\text{Net Profit / Operating Profit}}{\text{Capital Employed}} \times 100$$	Expressed as a percentage ($\%$)
Liquidity Ratios	Current Ratio	$$\frac{\text{Current Assets}}{\text{Current Liabilities}}$$	Expressed as a ratio to 1 ($X : 1$)
Liquidity Ratios	Liquid Ratio (Acid Test)	$$\frac{\text{Current Assets} - \text{Inventory}}{\text{Current Liabilities}}$$	Expressed as a ratio to 1 ($X : 1$)

Liquidity ratios MUST be written as $X : 1$ (e.g. $1.5:1$). Profitability ratios MUST end with $\%$. Omitting units loses marks!

Inventory is the least liquid asset. Never include inventory in the numerator for the Liquid / Acid Test Ratio!

Capital Employed is Total Assets minus Current Liabilities OR Non-Current Liabilities plus Owner's Equity.