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capital employed = debt + equity
(cover bottom) EST at end of activity - (EST + duration of activity)
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Gross profit margin (PROFITABILITY)
gross profit / revenue x 100
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Net profit margin (PROFITABILITY)
net profit / revenue x 100
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ROCE (return on capital employed) (PROFITABILITY)
profit before intrest and tax / capital employed x 100
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Return on equity
net profit / equity x100
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Liquidity
Ability of a business to cover its short term debts
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Working capital (net current assets) (LIQUIDITY)
current assests - current liabilities
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Current ratio (LIQUIDITY)
current assets / current liabilities
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Acid Test (LIQUIDITY)
current assets - stock / current liabilities
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Stock days (EFFICIENCY)
cost of stock / cost of sales x 365
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debtor days (EFFICIENCY)
debtors / revenue x365
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Creditor days (EFFICIENCY)
creditors / purchases x 365
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Gearing (SOLVENCY)
long term liabilities / capital employed x 100 (looking for lower %)
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Debt to equity (SOLVENCY)
Debt / Equity ( equity is retained profits and shares)
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Intrest Cover (SOLVENCY)
profit before interest and tax / interest expense( less than 1 cant pay it back)
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Dividends per share (INVESTMENT)
dividend / number of shares
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Dividend yield (INVESTMENT)
Dividends per share / market price x 100
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earnings per share (INVESTMENT)
net profit / no. of shares in issue
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Profit before intrest and tax
profit before taxation + intrest
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Other cards in this set

Card 2

Front

Gross profit margin (PROFITABILITY)

Back

gross profit / revenue x 100

Card 3

Front

Net profit margin (PROFITABILITY)

Back

Preview of the front of card 3

Card 4

Front

ROCE (return on capital employed) (PROFITABILITY)

Back

Preview of the front of card 4

Card 5

Front

Return on equity

Back

Preview of the front of card 5
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