FA- profitability

Question 1

Gross profit% margin

Answer 1

Shows the proportion of each rand sold left to cover expenses

Question 2

Net profit% margin

Answer 2

Shows Shows the proportion of each rand sold that ends up as profit

Question 3

Return on capital employed

Answer 3

Shows the return the providers of capital and long term financing gets

Question 4

Return on owners equity

Answer 4

Shows the return to the ordinary shareholders

Question 5

Return on assets

Answer 5

How effective did management use the assets

Question 6

Earnings per ordinary share

Answer 6

Similar to the return on ordinary equity but calculated as a value not a %

Question 7

Dividends per share

Answer 7

How much dividends has been declared per share

Question 8

Ordinary dividend payout ratio

Answer 8

How much of earnings is paid out as dividends

Question 9

Price earnings ratio

Answer 9

How much investors are willing to pay

Question 10

Earnings yield

Answer 10

Earnings as % of each R1 invested

Question 11

Dividend yield

Answer 11

Dividends as % of each R1 invested