Ratios

Question 1

Earnings per share (EPS) is calculated as:

Answer 1

Profit attributable to ordinary shareholders / number of ordinary shares in issue

Question 2

Dividend Yield is calculated as…

Answer 2

(Dividend per share / Current share price) x100

Question 3

Dividend per share is calculated as…

Answer 3

Dividend payment / Number of ordinary shares in issue

Question 4

Dividend cover on an individual basis is calculated as…

Answer 4

Earnings per share / Dividends per share

Question 5

Dividend cover on a total profit basis is calculated as…

Answer 5

Profit attributable to ordinary shareholders / Dividends paid to ordinary shareholders

Question 6

Price earnings (P/E) ratio…

Answer 6

Current market price of share / Earnings per share

Tip: it’s in the name

Question 7

Net Asset Value per share (NAV)…

Answer 7

Net assets attributable to ordinary share holders / Number of ordinary shares in issue

Question 8

Gearing is expressed as

Answer 8

(Total gross assets / net assets) x100