important formulas Flashcards
Inventories turnover period, days
(inventory/cost of sales) x 365
Settlement period for trade receivables, days
(trade receivables/sales) x 365
Settlement period for trade payables, days
(trade payables/cost of sales) x 365
Sales revenue per employee
(sales revenue/number of employees)
Gearing ratio
non-current liabilities/(equity + non-current liabilities) x 100
interest cover ratio
operating profit/interest expense or finance expense
Current ratios
current assests/current liabilities
quick ratio
(current assets - inventory)/current liabilities
gross profit margin
(gross profit/sales) x 100
Operating profit margin
(operating profit/sales) x 100
return on shareholders’ funds
(profit for the year/equity) x 100
return on capital employed
operating profit/ (equity + non-current liabilities) x100
Earnings per share ratio (EPS)
profit for the period/number of ordinary shares
Price to earnings ratio (P/E)
market share price/EPS
Dividends per share
dividend/number of shares
Dividend Yield
(dividend per share/market share price) x 100
