ato logo
Search Suggestion:

Financial ratios

Last updated 23 September 2020

The financial ratios tables contain the following:

  • net profit ratio = (total business income – total expenses) / total business income.
  • gross profit ratio = (total business income – cost of sales) / total business income.
  • wage to turnover ratio = salary and wages paid / total business income.

The tax return labels used to calculate the ratios are:

Data item

Entity type

Income tax return label

Total business income

Individuals

Total business income, Item P8

Companies

Total income, Item 6, label S

Partnerships and trusts

Total business income, Item 5

Cost of sales

Individuals

Cost of sales, Item P8, (label K + label L – label M)

Companies

Cost of sales, Item 6, label A

Partnerships and trusts

Cost of sales, Item 5, label E

Total expenses

Individuals

Total expenses, Item P8, (label S + label T)

Companies

Total expenses, Item 6, label Q

Partnerships and trusts

Total expenses, Item 5, label O

Salary and wages paid

Individuals

Total salary & wage expenses, Item P13, label G

Companies

Total salary & wage expenses, Item 8, label D

Partnerships and trusts

Total salary & wage expenses, Item 44, label L

QC100745