Formula 1
Acid test ratio
Current Assets - closing stock : Current Liabilities
What is debtors
An asset
Do you want the ROCE to be high or low
High
Net Profit Percentage
Net profit X100
Sales
Dividend Yeild
DPS
MV
Avg Period of time given to a debtor
Debtors x12/52/365
Credit Sales
what is creditors
A liability
Do you want interest cover to be high or low
High
Stock turnover
Avg Stock
What is Capital (EARL)
Liability
Current Ratio
Current Assets: Current Liabilites
What is Closing Stock
An asset
What does the ratio 1.02:1 mean
You have €1.02 on hand to pay for every €1 of debt you owe
Earnings per share (EPS)
Net Profit(-pref dividend)X100
No. Ord Shares issued
What is Capital Employed made up of?
Loan + All Shares issued + P and L - Drawings
Avg period of time given to creditors
Purchases X12/52/365
credit purchases
What is Rent payable
An Expense
What does the avg period given to debtors tell you
How long it takes debtors to pay you back on average
Dividend per ordinary share (DPS)
Ordinary dividend x100
No. Ord shares issued
What is the ideal for the acid test ratio
Return on Capital Employed (ROCE)
Net Profit (+ interest and tax)
Capital Employed
What is Rent due
A liability
What unit should the market price and EPS and DPS be kept in for the formula to work accurately
Cent
Price Earnings Ratio
Market Value
EPS
Period to recoup share price at present payout
MV
DPS