Component 3: ratios Flashcards
return on total assets?
(operating profit + investment income)/ average total assets x 100 = %
return on equity?
(operating profit + investment income - finance cost)/ average equity x 100 = %
cost of debt?
finance costs/ average debt capital x 100 = %
return on finanacial assets?
investment income/ average financial assets x 100 = %
gross profit margin?
gross profit/ revenue x 100 = %
operating profit margin?
operating profit/ revenue x 100 = %
EBIT-margin?
(profit before tax + finance costs)/ revenue x 100 = %
net profit margin?
profit after tax/ revenue x 100 = %
current ratio?
current assets/ current liabilities
acid test ratio?
(current assets - inventory - prepayments)/ current liabilities
turnover ratio of current assets?
net revenue/ average current assets = …times
turnover time of current assets?
average current assets/ net revenue x 360 = …days
turnover ratio of PPE?
net revenue/ average PPE @ carrying value = …times
turnover time of PPE?
average PPE @ carrying value/ net revenue x 360 = …days
turnover ratio of trade receivables?
credit revenue/ average trade receivables = …times
turnover time of trade receivables?
average trade receivables/ credit revenue x 360 = …days
turnover ratio of inventory?
cost of sales/ average inventory = …times
turnover time of inventory?
average inventory/ cost of sales x 360 = …days
debt-to-asset ratio?
debt capital/ total assets x 100 = %
or
debt capital/ total capital x 100 = %
finance cost coverage?
(profit before finance cost and tax)/ finance cost = …times
ordinary dividend coverage?
earnings per share/ dividend per share = …times
or
(profit after tax - preference share dividends)/ ordinary dividends declared = …times
or
earnings yield/ dividend yield = …times
earnings per share?
attributable earnings/ average number of ordinary shares issued = …c per share
earning yield?
earnings per share/ market price per share x 100 = %
dividend per share?
ordinary dividend declared/ average number of ordinary shares issued = …c per share
