SU3 |Financial Ratios Flashcards
Memorizing the formulas (20 cards)
What is the formula for Gross Profit Margin?
(Gross Profit ÷ Sales) × 100
What is the formula for Net Profit Margin?
(Net Profit After Interest and Tax ÷ Sales) × 100
What is the formula for Return on Investment (ROI/ROA)?
(Net Profit After Interest and Tax ÷ Total Assets) × 100
What is the formula for Return on Equity (ROE)?
(Net Profit After Interest and Tax ÷ Shareholders’ Equity) × 100
What is the formula for Current Ratio?
Current Assets ÷ Current Liabilities
What is the formula for Quick Ratio (Acid Test)?
(Current Assets – Inventory) ÷ Current Liabilities
What is the formula for Net Working Capital?
Current Assets – Current Liabilities
What is the formula for Inventory Turnover?
Cost of Goods Sold ÷ Average Inventory
What is the formula for Average Inventory?
(Opening Inventory + Closing Inventory) ÷ 2
What is the formula for Average Collection Period (ACP)?
Accounts Receivable ÷ (Annual Credit Sales ÷ 360)
What is the formula for Average Payment Period (APP)?
Accounts Payable ÷ (Annual Credit Purchases ÷ 360)
What is the formula for Total Asset Turnover?
Sales ÷ Total Assets
What is the formula for Debt Ratio?
(Total Debt ÷ Total Assets) × 100
What is the formula for Debt-Equity Ratio?
(Long-term Debt ÷ Shareholders’ Equity) × 100
What is the formula for Interest Cover Ratio (Times Interest Earned)?
EBIT ÷ Interest Expense
What is the formula for Earnings per Share (EPS)?
Net Profit After Tax ÷ Number of Ordinary Shares
What is the formula for Dividend per Share (DPS)?
Ordinary Dividends ÷ Number of Ordinary Shares
What is the formula for Price/Earnings (P/E) Ratio?
Current Market Price per Share ÷ Earnings per Share
What is the formula for Earnings Yield?
(Earnings per Share ÷ Current Market Price per Share) × 100
What is the formula for Dividend Yield?
(Dividend per Share ÷ Current Market Price per Share) × 100
