Interpretation Of Accounts - Ratio Analysis Q5 Flashcards
Return on Capital Employed (ROCE)
Net Profit (before interest & tax)
——————————————— = %
Capital Employed
Return on Shareholders’ Funds (ROSF / ROI)
Net Profit (after tax & preference dividends) x 100
——————————————————————— = %
Shareholders’ Funds
Gross Profit Percentage (margin)
Gross Profit x 100
————————– = %
Sales
Net Profit Percentage (margin)
Net Profit x 100
———————– = %
Sales
Current Ratio
Current Assets : Current Liabilities = X:Y
Acid Test Ratio (working capital / quick ratio)
Current Assets less Closing Stock : Current Liabilities = X:Y
Fixed Interest Capital to Total Capital
Loans + Debentures + Preference Shares
———————————————————– = % or ratio
Capital Employed
Interest Cover
Net Profit (before interest & tax)
———————————————- = times
Interest
Stock Turnover
Cost of Sales
——————– = times
Average Stock
Average Stock
Opening Stock - Closing Stock
——————–———————- = €
2
Average Period of Credit Given to Debtors
Debentures x 12 or 52 or 365
——————–———————- = Months or Weeks or Days
Credit Sales
Average Period of Credit Received from Creditors
Creditors x 12 or 52 or 365
——————–——————– = Months or Weeks or Days
Credit Purchases
Earnings per Share (EPS)
Net Profit (after preference dividends) x 100
——————–——————–——————–—- = Cent
No. Of Ordinary Shares Issued
Price Earnings Ratio (p/e ratio)
Market Value of One Ordinary Share
——————–——————–————- = Years
Earnings per Share
Dividend per Ordinary Share
Ordinary Dividend x 100
——————–———————— = €/Cent
No. Of Ordinary Shares Issued
