Chpt 1 Ratios Flashcards
1
Q
Return on equity
A
= (PAT and preference divs) / (ordinary SC and reserves)
2
Q
Inventory days
A
= inventory /COS
3
Q
Receivable days
A
= receivables / credit turnover (revenue)
4
Q
Payables days
A
= payables / credit purchases or COS
5
Q
EPS
A
= PAT and preference divs / no shares
6
Q
Div payout ratio
A
= DPS / EPS
7
Q
Div yield
A
= div payout ratio / PE
8
Q
Earnings yield
A
= EPS / SP
9
Q
P/E
A
= mkt valuation of shares / (PAT - preference divs)
