Ratios for q Flashcards
ALWAYS Return on capital employed
Operating profit/(long term borrowings+ equity)
%
ALWAYS Net profit margin
(Net profit/Revenue) x 100
%
ALWAYS Capital gearing
(long term borrowings/(long term borrowings +Equity)) x 100
%
ALWAYS current ratio
Current assets/Current liabilities
X:1
ALWAYS Total asset turnover
Revenue/Total assets
times
ALWAYS Inventory holding days
Inventory/Cost of sales x 365
days
MAYBE Return on shareholders’ equity
NP/Equity x 100
%
MAYBE Gross profit margin
(Gross profit/Revenue) x 100
%
MAYBE EPS
Net profit/average outstanding shares
£X.YY
MAYBE Dividend cover
Earnings per share/Dividend per share
times
IF INVESTMENT Q P/E ratio
Market price per share/EPS
IF INVESTMENT Q Dividend yield
DPS/Market price per share
x100
Interest cover
Operation profit / interest expense (finance costs)
Quick ratio
(Current assets - inventories) / Current liabilities)
Return on assets
Net profit / total assets
