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Flashcards in Formula Ratio's Deck (21)
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1
Q

Acid Test

A

Current Assets - Stock/Inventory / Current Liabilities

2
Q

Asset Turnover

A

Revenue / Net Assets

3
Q

Average Rate of Return

A
  1. Net cash flow / N.O years = Average Annual Profit

2. (Annual profit / initial investment) x 100

4
Q

Current Ratio

A

Current Assets / Current Liabilities, expressed as x:1

5
Q

Dividend per Share

A

Total Dividends / Number issued, expressed in pence per share

6
Q

Dividend Yield

A

(Ordinary Share Dividend (in pence) / Current Market Price) x 100

7
Q

Gearing

A

(Non Current Liabilities / (Total equity + non current liabilities)) x 100

8
Q

Gross Profit

A

Sales Revenue - Cost of sales

9
Q

Inventory Turnover

A

Cost of Sales / Average inventory held

10
Q

Market Share

A

(Sales of a Firm / Total Market Sales) x 100

11
Q

Moving Averages (3 point moving average)

A

Add 1,2,3 divide by 3
Add 2,3,4 divide by 3
Add 3,4,5 deivide by 3
Continue until the last number is included in a set of 3

12
Q

Net Assets

A

Non-Current Assets + Current Assets - Current Liabilities - Non current Liabilities

13
Q

Net Current Assets/Liabilities

A

Current Assets - Current Liabilities.

14
Q

Net Present Value

A
  • Net Cash flow Table
  • Multiply each years net cash flow by the discount factor year 0 is multiplies by 1
  • Add all the net values including the negative for year 0
15
Q

Net Profit Margin

A

(Operating profit (net profit) / Sales Revenue) x 100

16
Q

Payable Day’s

A

Payable x 365 / Cost of Goods Sold

17
Q

Payback

A
  1. Net cash flow Table
  2. Cumulative to identify when investment is covered
  3. ÷ amount paid in last year by net cash flow same year
  4. Times figure in step 3 by 12 to get monthly.
18
Q

Receivables

A

Receivables x 365 / Revenue (in days)

19
Q

ROCE

A

Operating Profit / Total equity + Non Current Liabilities.

20
Q

Working Capital

A

Current Assets - Current Liabilities

21
Q

Equity

A

TOTAL assets - TOTAL liabilities