Ratio Analysis

  • Created by: Danielle
  • Created on: 26-01-17 19:14
Return on Capital Employed ROCE
(Profit before interest and tax/Net Capital Employed)x100
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Net Capital Employed
Equity+Non-current Liabilities OR Total Assets-Current Liabilities
2 of 28
Gross Profit Margin
(Gross profit/Turnover)x100
3 of 28
Net Profit Margin
(Net profit/Turnover)x100
4 of 28
Asset Turnover Ratio
Turnover/Net Capital Employed
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Working Capital
Current Assets-Current Liabilities
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Current Ratio
Current Assets/Current Liabilities
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Acid Test Ratio
(Current Assets-Inventory)/Current Liabilities
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Working Capital Cycle
Receivables days+Inventory days-Payables days
9 of 28
Trade Receivables days
(Trade Receivables/Turnover)x365
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Trade Payables days
(Trade Payables/Purchases)x365
11 of 28
Inventory days
(Inventory of finished goods/Purchases)x365
12 of 28
Leverage OR Debt/Equity Ratio D/E
(Debt Capital/Equity Capital)x100
13 of 28
Gearing Ratio
(Debt Capital/(Equity Capital+Debt Capital))x100
14 of 28
Interest Cover
Profit before interest and tax (PBIT)/Interest Expense
15 of 28
Dividend Yield
(Annual Equity Dividend/Market Value of Equity Shares)x100
16 of 28
Dividend Cover
Profit after tax and preference dividends/Annual equity dividend
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Return on Equity RoE
(Profit after tax and preference dividends/Shareholders interests)x100
18 of 28
Shareholders Interests
Share Capital+Reserves+Retained Earnings
19 of 28
Earnings per Share EPS
Profit after tax and preference dividends/Number of equity shares
20 of 28
Price/Earnings Ratio P/E
Market price per share/Earnings per share
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Market to Book Ratio M/B
Market value of equity/Book value of equity
22 of 28
23 of 28
Price per unit x Quantity
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Variable Costs
Variable cost per unit x Quantity
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Break even
Profit=0 and Fixed Costs=Quantity x (Price per unit - Variable cost per unit)
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Profit/Volume Ratio
(Contribution per unit/Revenue per unit)x100
27 of 28
Percentage Margin of Safety
((Expected Sales-Breakeven sales)/Expected Sales)x100
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Other cards in this set

Card 2


Equity+Non-current Liabilities OR Total Assets-Current Liabilities


Net Capital Employed

Card 3


(Gross profit/Turnover)x100


Preview of the back of card 3

Card 4


(Net profit/Turnover)x100


Preview of the back of card 4

Card 5


Turnover/Net Capital Employed


Preview of the back of card 5
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