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Accounting Ratios > Ratios > Flashcards

Ratios Flashcards

1
Q

Stock Turnover (opening)

A

(Cost of sales x2) - closing stock
————————
Turnover

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2
Q

Stock Turnover (closing)

A

(Cost of sales x 2) - opening stock
————————-
Turnover

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3
Q

Average period of credit ALLOWED

A

Cash sales =

Sales - (debtors x 12)
——————-
Avg. period

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4
Q

Average period of credit RECEIVED

A

Cash purchases=

C.O.S + close - open - (creditors x 12)
————————
Avg. period

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5
Q

Return on (equity) Shareholders Funds

A

Net prof - pref dividends X 100
————————————
Ord shares + reserves

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6
Q

Earnings per Share (EPS)

A

Net profit - pref dividends x 100
————————————-
Ord shares

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7
Q

Preference Dividends

A

Pref shares x pref %

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8
Q

Return on Capital Employed (ROCE)

A

Net profit + interest
—————————— X 100
Capital Employed

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9
Q

Current Ratio

A

Current Assets
————————
Current Liabilities

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10
Q

Acid Test / Quick Ratio

A

Current Assets - Closing Stock
———————————————
Current Liabilities

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11
Q

Gearing Ratio

A

Debentures + Pref shares
———————————— X 100
Capital Employed

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12
Q

Interest Cover

A

Net Profit + interest
——————————
Interest

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13
Q

Dividend per Share (DPS)

A

Ord divs
————— X 100
Ord shares

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14
Q

Ordinary Dividends

A

Total dividends - Preference dividends

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15
Q

Dividend Yield

A

DPS
——— X 100
MPS

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16
Q

Dividend Cover

A

Net prof - pref divs EPS
—————————— OR ———-
Ordinary divs DPS

17
Q

Price Earnings Ratio (PER)
(Based on performance/earnings)

A

MPS
————
EPS

18
Q

Price Dividend Ratio
(Based on dividend payout)

A

MPS
———-
DPS

Accounting Ratios (1 decks)

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