Ratios

• Return on Shareholder Funds = (Profit less dividends) / (Ordinary share capital + reserves) x 100
• Return on capital employed = (Operating profit / Capital employed) x 100
• Operating Profit - Profit before tax and interest
• Capital employed - Equity + Non-current liabilities
• Operating profit margin = (operating profit / sales revenue) x 100
• Gross profit margin = (Gross profit / sales revenue) x 100
• Inventory turnover period = (Average inventory held / cost of sales) x 365 days
• Trade Receivables period = (Average trade receivables / Credit sales revenue) x 365 days
• Trade Payables Period = (Average trade payables / Credit purchases) x 365 days
• Asset Turnover = Sales Revenue / Capital Employed
• Current Ratio = Current Assets / Current Liabilities
• Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities
• Financial Gearing = Non-current Liabilities / (Non-current liabilities + Equity) x 100
• Interest Cover = Operating Profit / Interest Payable
• Dividend Payout Ratio = (Dividends announced for the year / Earnings available to shareholders) x 100
• Dividend cover ratio = Earnings for year / Dividend announced for year
• Dividend yield ratio = (Dividend per share / market value per share) x 100
• Earnings per share = (Earnings available to shareholders / Number of shares) x 100
• Price earnings ratio = market value per share / earnings per share
• Acid test ratio = current assets - inventory / current liabilities
• Current ratio = Current Assets / Current Liabilities
• Return on shareholder funds = (Profit after tax / Equity) x 100
• Payables Period = (Average Payables / Cost of sales) x 365 days
• Receivables period = (Average receivables / sales revenue) x 365 days
• Inventory period = (Average Inventory / Cost of sales) x 365 days