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Accounting for Analysts > Ratio > Flashcards

Ratio Flashcards

1
Q

List the profitability ratio

A
  1. ROE
  2. ROCE
  3. Net operating profit margin
  4. gross profit margin
  5. expense/revenue percentage
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2
Q

List Efficiency ratios

A
  1. Asset turnover
  2. NCA turnover
  3. Return on total assets
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3
Q

List liquidity and working capital ratios

A
  1. Current Ratio
  2. quick/acid test
  3. Average inventory turnover period/inventory days
  4. Average inventory turnover
  5. Trade receivable days
  6. Trade payables days
  7. Working capital cycle
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4
Q

List financial gearing ratios

A
  1. Gearing

2. Debt/Equity

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5
Q

List investment ratios

A
  1. Interest cover
  2. Dividend cover
  3. Dividend yield
  4. EPS
  5. PE
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6
Q

ROE formula

A

(Profit for the year - preference dividend)/

(Ordinary share capital + reserves) x 100

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7
Q

ROCE formula

A

Profit from operations (PBIT) /
(Total assets – current liabilities) x 100%

or Total equity + non-current liabilities

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8
Q

Net / operating profit margin

A

Profit from operations /

Revenue x 100%

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9
Q

Gross profit margin formula

A

GROSS PROFIT / REVENUE x 100

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10
Q

Expense/revenue percentage

A

Specified expense/revenue x 100

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11
Q

Asset turnover formula

A

Revenue /
Total assets – current liabilities

= £ or times

OR

Revenue/
(equity + non current liabilities)

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12
Q

Non-current asset turnover formula

A

Revenue /NCA

= no. of times

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13
Q

Asset turnover formula

A

Revenue / total assets

= X times

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14
Q

Return on total assets formula

A

Profit from ops/ TA x 100

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15
Q

Current ratio formula

A

CA/CL

= X:1

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16
Q

Quick/acid test formula

A

(CA-Inv)/CL

= X:1

17
Q

Average inventory turnover period formula

A

Av inv/COS x365

= no.of days

18
Q

Average inventory turnover formula

A

COS/av inv

= X times

19
Q

Trade receivables days formula

A

Trade receivables/revenue x 365

20
Q

Trade payable days formula

A

Trade payables/purchases x 365

NB may not have purchases so could be cos

21
Q

Working capital cycle formula

A

Inv days+ receivable days - payable days

22
Q

Gearing formula

A

NCL/Total eq+ NCL . x 100

23
Q

Deb/equity formula

A

(preference shares+ long term loans)/shareholder funds . x100

24
Q

Interest cover formula

A

profit from ops/finance costs . = X times

25
Q

Dividend cover formula

A

net profit after tax and preference div/ordinary div paid and proposed

= X times

26
Q

Dividend yield formula

A

Dividend per share/market price per share x 100

27
Q

EPS formula

A

Profit after tax and preference dividends/ no of issude ordinary shares

28
Q

Price/earnings ratio formula

A

Market price per share/ earnings per share

Accounting for Analysts (4 decks)

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