RATIOS Flashcards
1
Q
RETURN ON EQUITY
A
Net profit/shareholders funds x 100
2
Q
EARNINGS PER SHARE
A
Net profit/Amount of shares
3
Q
PRICE EARNINGS RATIO
A
Market price of share/Earnings per share
4
Q
ASSET TURNOVER
A
Turnover(Revenue)/ Net assets
5
Q
STOCK TURNOVER
A
Cost of sales/Stock
6
Q
GROSS PROFIT MARGIN
A
Gross profit/Turnover x100
7
Q
NET PROFIT MARGIN
A
Net profit/Turnover x 100
8
Q
RETURN ON CAPITAL EMPLOYED (ROCE)
A
Profit before tax and interest/Long term capital employed x 100
9
Q
DEBTOR DAYS
A
Debtors/Turnover x 365
10
Q
CREDITOR DAYS
A
Creditors/Turnover x 365
11
Q
CURRENT RATIO
A
Current assets/Current liabilities
12
Q
ACID TEST RATIO
A
Current assets - stock/Current liabilities
13
Q
GEARING RATIO
A
Fixed cost capital/Long term capital x 100
14
Q
INTEREST COVER
A
Profit before tax and interest/Interest
15
Q
DIVIDEND PER SHARE
A
Dividend/Number of shares
