Flashcards in Formula Ratio's Deck (21):

1

## Acid Test

### Current Assets - Stock/Inventory / Current Liabilities

2

## Asset Turnover

### Revenue / Net Assets

3

## Average Rate of Return

###
1. Net cash flow / N.O years = Average Annual Profit

2. (Annual profit / initial investment) x 100

4

## Current Ratio

### Current Assets / Current Liabilities, expressed as x:1

5

## Dividend per Share

### Total Dividends / Number issued, expressed in pence per share

6

## Dividend Yield

### (Ordinary Share Dividend (in pence) / Current Market Price) x 100

7

## Gearing

### (Non Current Liabilities / (Total equity + non current liabilities)) x 100

8

## Gross Profit

### Sales Revenue - Cost of sales

9

## Inventory Turnover

### Cost of Sales / Average inventory held

10

## Market Share

### (Sales of a Firm / Total Market Sales) x 100

11

## Moving Averages (3 point moving average)

###
Add 1,2,3 divide by 3

Add 2,3,4 divide by 3

Add 3,4,5 deivide by 3

Continue until the last number is included in a set of 3

12

## Net Assets

### Non-Current Assets + Current Assets - Current Liabilities - Non current Liabilities

13

## Net Current Assets/Liabilities

### Current Assets - Current Liabilities.

14

## Net Present Value

###
-Net Cash flow Table

-Multiply each years net cash flow by the discount factor year 0 is multiplies by 1

-Add all the net values including the negative for year 0

15

## Net Profit Margin

### (Operating profit (net profit) / Sales Revenue) x 100

16

## Payable Day's

### Payable x 365 / Cost of Goods Sold

17

## Payback

###
1. Net cash flow Table

2. Cumulative to identify when investment is covered

3. ÷ amount paid in last year by net cash flow same year

4. Times figure in step 3 by 12 to get monthly.

18

## Receivables

### Receivables x 365 / Revenue (in days)

19

## ROCE

### Operating Profit / Total equity + Non Current Liabilities.

20

## Working Capital

### Current Assets - Current Liabilities

21