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Accounting Ratios
5th Year Accounting Ratio Revision
| Question | Answer |
|---|---|
| Return on Capital Employed | Net Profit + Interest / Capital Employed x 100 |
| Dividend Per Share | Dividends-Pref Div / No. Ord Shares |
| Dividend Yield | Div Per Ord Share / Market Price x 100 |
| Current Ratio | Current Assets : Current Liabilities |
| Acid Test | Current Assets - Cl. Stock : Current Liabilities |
| Stock Turnover | Cost of Sales / Average Stock |
| Debtors Collection Period | Debtors x 12 or 365 / Credit Sales |
| Creditors Collection Period | Creditors x 12 or 365 / Credit Purchases |
| Average Stock | Opening Stock + Closing Stock / 2 |
| Dividend Cover | Net Profit - Pref Div / Ord Dividend |
| Fixed Interest Capital to Total Capital | Loans + Debentures + Pref Shares / Capital Employed x 100 |
| Interest Cover | Net Profit before Interest / Interest for the year |
| Earnings Per Share | Net Profit - Pref Dividend / No. of Ordinary Shares |
| Price Earnings Ratio | Market Price / Earnings Per Share |