Ratios

Question 1

ROSF

Answer 1

Profit for year (-pref dividends) / (Ordinary share capital + Reserves)

Question 2

ROCE

Answer 2

Operating profit / (Share Cap + Reserves + NCL)

Question 3

Operating Profit Margin Ratio

Answer 3

(Operating Profit / Sales Revenue) * 100

Question 4

Gross Profit

Answer 4

(Sales Revenue - CoS)

Question 5

Inventory Turnover

Answer 5

Avg inventories held / CoS x 365

Question 6

Trade Receivables settlement period

Answer 6

Avg trade receivables / Credit sales revenue x 365

Question 7

Trade Payables settlement period

Answer 7

Avg trade payables / Credit purchases

Question 8

Net Asset Turnover

Answer 8

Sales Revenue / (Share Cap + Reserves + NCL)

Question 9

Operating Profit Margin Ratio * Net Asset Turnover

Answer 9

ROCE

Question 10

Current Ratio

Answer 10

CA / CL

Question 11

Acid Test

Answer 11

CA - Inventories / CL

Question 12

Cash from operations to maturing obligations

Answer 12

Cash from operations / CL

Question 13

Gearing

Answer 13

NCL / (Share Cap + Reserves + NCL) x 100

Question 14

Interest Cover

Answer 14

Operating Profits / Interest Payable

Question 15

EPS

Answer 15

Earnings to ord shareholders / # of Ord shares

Question 16

Dividend Yield

Answer 16

Dividend per share / Market value per share

Question 17

Price / Earnings

Answer 17

Market value per share / Earnings per Share