Individual Company Performance And Company Accounts Flashcards
Annual depreciation
Original cost - expected residual value
———————————————
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
Modified Duration Formula
(1 + GRY)
Market return formula (change CAPM)
{ERi–Rf}
———— + Rf
ßi
Price to book
Share price / NAV per share
Gearing ratio
Long term debt + preference shares / ordinary shareholder funds x 100
Basic EPS
Net income-preference shares dividends / No of ordinary shares in issue
Diluted nav per share
Net assets + money subscribed by warrant holders
———-—————————-
No of ordinary shares in issue + new shares issued to warrant holders
Undiluted nav per share
Net assets
—————
No of ordinary shares in issue