Ratios Flashcards
(29 cards)
Gross profit margin
Gross profit / revenue * 100
Operating profit margin
Operating profit / revenue * 100
ROCE?
Operating profit / Capital employed * 100
ROE?
(PFY - preference dividends) / Ordinary shareholders’ funds * 100
Capital employed?
Shareholders’ funds + non-current liabilities
Total assets - current liabilities
Get ROCE from two equations?
Asset turnover * operating profit margin
Current ratio?
Current assets / Current liabilities
Quick ratio?
(Current assets - inventory) / Current liabilities
Receivables collection period?
(Average accounts receivable / Annual credit sales) × 365 days
Payables payment period?
(Average accounts payable / Annual credit purchases) × 365 days
Inventory holding period?
(Average inventory / Annual cost of sales) × 365 days
Operating cycle?
Inventory (days) + Receivables (days) − Payables (days)
Asset turnover?
Revenue / Capital employed
Sales/working capital?
Revenue / Working capital
Debt to equity?
(Non-current liabilities/ Capital + reserves) * 100
Interest coverage?
Operating profit / Interest expense
Cash flow coverage?
(Cash from operating activites + income taxes paid) / Interest expense
EPS?
(PFY - preference dividends) / Weighted average number of ordinary shares in issue
Diluted EPS?
(PFY - Preference dividends + PDS adjustments) / (Weighted average of ordinary shares in issue + PDS)
PE ratio?
Ordinary share price / EPS
Dividend coverage?
(PFY - preference dividends) / Ordinary dividend
Dividend payout ratio?
Ordinary dividend / (PFY - preference dividends)
Dividend yield?
(Dividend per ordinary share / Ordinary share price) * 100
Earnings yield?
(EPS / ordinary share price) * 100
