Interpretation of Accounts - Ratios Flashcards
Learn Ratio for Q5
Return on Capital Employed
Net Profit before Interest x 100
Capital Employed
Gearing
Debentures + Preference Shares x 100
Capital Employed
Interest Cover
Net Profit before Interest
Interest for the Year
Earnings per Share
Net Profit - Preference Dividend x 100
No. of Ordinary Shares
Dividend per Share
Total Ordinary Dividend x 100
No. of Ordinary Shares
Dividend Yield
Dividend per Share x 100
Market Price
Dividend Cover
Net Profit - Preference Dividend
Total Ordinary Dividend
OR
Earnings per Share
Dividend per Share
Current Ratio
Current Assets : Current Liabilities
_ : 1
Acid Test / Quick Ratio
Current Assets- Closing Stock : Current Liabilities
_ : 1
Period of Credit Given to Debtors
Credit Sales x 365/52/12
Debtors
Period of Credit Received from Creditors
Credit Purchases x 365/52/12
Creditors
Stock Turnover
Cost of Sales
Average Stock
Average Stock
Opening Stock + Closing Stock
2
Price Earnings Ratio
Market Price/Value
Earnings Per Share
Return on Equity/Shareholders’ fund
Net Profit - Pref. Dividend x 100
Total Ord. Shares + P&L Balance
