Equations Flashcards
Return on capital employed (ROCE)
profit before tax and interest/ long term capital employed (X100)
gross profit margin
gross profit/turnover X100
net profit margin
net profit/turnover X100
return on equity
net profit/equity X100
asset turnover
turnover/net assets
stock turnover
cost of sales/stock
debtor collection period
debtors/turnover X365
creditor payment
creditors/cost of sales X365
current ratio
current assets/ current liabilities
acid test ratio
current assets-stock/current liabilities
gearing ratio
fixed cost capital/long term capital X100
fixed cost capital
loan
long term capital
loan+profit+ (shares)
interest cover
profit before tax and interest/interest
earnings per share
profit after tax/number of ordinary shares (how much profit each share generates)
price earnings ratio
share price/EPS (the higher the better)
dividend per share
dividend/ number of shares
dividend yield
dividend per share/share price (% of share price)
dividend cover
profit after tax/ dividends (how many times dividends can be paid from net profit)
ARR
average profit/capital outlay
average profit
total revenue-capital outlay/lifetime
payback
remaining to pay/revenue X12
