Formulae Flashcards
(31 cards)
Current Ratio
current assets/current liabilities
Quick Ratio
(current assets - inventory)/current liabilities
EPS
Profit/num of shares
P/E ratio
price per share/earnings per share
What does high P/E suggest?
High growth prospects/over valued
What does low P/E suggest?
Undervalued
EV/EBITDA
EV/EBITDA
Dividend yield
div per share/market price *100
What does low Div yield suggest?
High future growth
Div cover
Earnings per share/dividend per share
Interest cover ratio
profit before tax and interest/interest expense
Return on capital employed (ROCE)
operating profits/capital employed * 100
Return on equity (ROE)
net income/shareholders equity *100
Total assets
Equity + liabilities
Profit Margin
profit/revenue
What are the 3 financial statements?
Statement of Financial Position
Income Statement
Cash flow statement
Name of accounting standards
General Accepted Accounting Principles (GAAP))
What is on the statement of financial position?
Assets (non/current assets)
Capital and Resreves
Liabilities
what are non current assets?
Intended to be used for more than a year
What are examples of intangible non-current assets?
Goodwill
Trademarks
Patents
What are examples of tangible non-current assets?
Property
Equiptment
What is share capital?
Nominal value of total shares in issue
What is share premium?
Any excess above the nominal value raised on ossie
Where are uncovered dividends paid from?
Retained earnings
