Ratio Formulas Flashcards
PROFITABILITY
Gross Profit Margin
Gross profit
——————– x100
Sales
PROFITABILITTY
Return on Capital Employed
Profit before interest and tax
—————————————– x 100
Share capital + Reserves + Long term loan
PROFITABILITY
Operating profit Margin
Operating Profit (PBIT)
———————————— x100
Sales Revenue
PROFITABILITY
Return on Shareholders Funds
Profit after Tax
—————————————- x 100
Shares and Reserves
LIQUIDITY
Current Ratio
Current Assets
Current Liabilities
LIQUIDITY
Quick Ratio/ Acid Test Ratio
Current Assets - Closing Stock
Current Liabilities
LIQUIDITY
Cash generated from operations to maturing obligations
Cash generated from obligations
Current Liabilities
EFFICIENCY
Average Inventory Turnover
Average Inventory
——————————— x 365
Cost of Sales
EFFICIENCY
Average Settlement period for receivables (Debtors days)
Average Trade Receivables
—————————————-x365
Credit sales
EFFICIENCY
Average settlement period for payables (Creditors Days)
Average Trade Payable
———————————— x365
Credit purchases
EFFICIENCY
Sales Revenue per Employee
Sales
Number of employees
GEARING
Debt to Equity
Long term (non-current) liabilities
——————————— x 100
Share capital and reserves
GEARING
Gearing
Long-term (non-current) liabilities
———————————————- x 100
Share capital + Reserves + Long term (non-current) liabilities
GEARING
Interest Cover
Profit before Interest and Tax
Interest Expense
INVESTOR
Dividend per Share
Dividends announced for the year
Number of Issued Shares
INVESTOR
Dividend Yield
Dividend per Share
———————————————- x100
Market Value of the Share
INVESTOR
Earning Per Share (EPS)
Earnings available to Ordinary Shareholders(P AFTER IT)
Number of issued Ordinary Shares
INVESTOR
Price Earnings Ratio (P/E)
Market Value per Share
Earnings per Share
Dividend Cover
Profit Available to Shareholders
Dividend for the year
Inventories Turnover
Cost of Sale
Average Stock
