Formula Ratio's Flashcards Preview

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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

Equity

TOTAL assets - TOTAL liabilities