Ratios Flashcards
(23 cards)
Current ratio
Current assets / Current liabilities
Acid test ratio
Current assets - inventory /
Current liabilities
Gross profit margin
Gross profit / revenue x 100
Operating profit margin
Profit from operations / revenue x100
Return from capital employed
Profit from operations /
Capital employed X 100
Trade receivables
Trade receivables / credit sales X 365
Trade payables
Trade payables / credit purchases X 365
Rate of inventory turnover
Cost of sales / average inventory
Gearing %
Non current liabilities / capital employed X 100
Price/ Earnings ratio
Market price per share / earning per share
Dividend Yield
Dividend per share / market price per share X 100
Dividend cover
Profit for the year / annual dividend
Inventory turnover
Cost of sales / average inventory
Trade receivables days
Receivables / sales x365
Trade payable days
Payables / cost of sales x 365
Payback period
Year 0 - (10,000)
Year 1 - 4000
Year 2 - 5000
Year 3 - 5000
2 years and 1000/5000 x12 = 2.4
Balance sheet
Non current assets ( Fixed )
- buildings machinery and cars
Current assets
- inventories cash and receivables
Non current liabilities
- bank loan ( long term )
Current liabilities
- payables, overdraft , tax
Share cap
Retained prof
Profit and loss account ( SCGOOTENDR)
Sales revenue
Cost of sales
Gross profit
Overheads
Operating profit
Tax
Expenses
Net profit
Dividends
Retained profits
Total float
Lft - duration - est
Free float
Next activity (est)- this activity (est) - duration
Market share
Sales of a business / total market share x 100
Market growth
This year sales - last years sales / last years x 100
Capacity utilisation
Existing output over time period / max possible output over time period. x 100
