Ratios Flashcards
Return on capital employed
(Operating profit) / (Share capital + reserves + non current liabilities) X100
Return on shareholder funds
(Gross profit- preference dividend) /
(Share capital + reserves) X 100
Net profit margin
Net profit/ Sales Revenue X100
Gross Profit Margin
Gross Profit/Sales Revenue X100j
Inventories turnover period
Inventory held/ Cost of Sales X 365
Trade receivable days/ settlement period for receivables
Trade receivables/ sales X 365
Trade payables/ Settlement period for payables
Trade payables/ purchases X365
Current Ratio
Current Assets/ Current Liabilities
Acid test ratio
(Current assets- inventory) / Current liabilities
Gearing Ratio
Non current liabilities/ share capital + reserves + non current liabilities x 100
Interest cover ratio
Profit before interest + tax/ tax
Dividend cover ratio
Gross profit/ dividends
Earnings per share ratio
Earnings/ total shares
Price earning ratio
Market price per share/ earnings per share
