Individual Company Performance And Company Accounts Flashcards
Annual depreciation
Original cost - expected residual value
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Expected useful life
Operating margin
Operating profit / sales x 100
Net margin
Net profit after taxation / sales x 100
Return on Equity
Net profit after taxation / total equity x 100
Return on capital employed
Profit before interest and taxation / capital employed x 100
Gearing
(Long term loans + preference shares) / (total equity - preference shares)
Interest cover
Profit before interest and tax / gross interest payable
Working capital (current) ratio
Current assets/current liabilities
Liquidity ratio
Current assets - stock / current liabilities
Three ways company can account for its stock
FIFO - first in first out
LIFO - last in first out
Weighted average cost
Debtor turnover
Sales / debtors
Stock turnover
Cost of sales / stock
Creditor turnover
Cost of sales / trade creditors
Sales per employee
Sales / number of employees
Pay out ratio
Dividend per share / Earnings per share
