Individual Company Performance And Company Accounts Flashcards

1
Q

Annual depreciation

A

Original cost - expected residual value
———————————————
Expected useful life

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2
Q

Operating margin

A

Operating profit / sales x 100

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3
Q

Net margin

A

Net profit after taxation / sales x 100

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4
Q

Return on Equity

A

Net profit after taxation / total equity x 100

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5
Q

Return on capital employed

A

Profit before interest and taxation / capital employed x 100

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6
Q

Gearing

A

(Long term loans + preference shares) / (total equity - preference shares)

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7
Q

Interest cover

A

Profit before interest and tax / gross interest payable

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8
Q

Working capital (current) ratio

A

Current assets/current liabilities

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9
Q

Liquidity ratio

A

Current assets - stock / current liabilities

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10
Q

Three ways company can account for its stock

A

FIFO - first in first out

LIFO - last in first out

Weighted average cost

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11
Q

Debtor turnover

A

Sales / debtors

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12
Q

Stock turnover

A

Cost of sales / stock

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13
Q

Creditor turnover

A

Cost of sales / trade creditors

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14
Q

Sales per employee

A

Sales / number of employees

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15
Q

Pay out ratio

A

Dividend per share / Earnings per share

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16
Q

Modified Duration Formula

A

(1 + GRY)

17
Q

Market return formula (change CAPM)

A

{ERi–Rf}
———— + Rf
ßi

18
Q

Price to book

A

Share price / NAV per share

19
Q

Gearing ratio

A

Long term debt + preference shares / ordinary shareholder funds x 100

20
Q

Basic EPS

A

Net income-preference shares dividends / No of ordinary shares in issue

21
Q

Diluted nav per share

A

Net assets + money subscribed by warrant holders
———-—————————-
No of ordinary shares in issue + new shares issued to warrant holders

22
Q

Undiluted nav per share

A

Net assets
—————
No of ordinary shares in issue