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  • Financial ratios

    Attention

    Warning:

    This information may not apply to the current year. Check the content carefully to ensure it is applicable to your circumstances.

    End of attention

    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

      Last modified: 20 Jun 2014QC 39946