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Financial Ratios
BusMan (1st Year)
| Term | Definition |
|---|---|
| Return on Assets | (operating profit+investment income/average total assets) x 100 = % |
| Return on Equity | (operating profit + investment income - financial assets/ average total equity) x 100 = % |
| Return on Debt Capital | (finance costs/average debt capital) x 100 = % |
| Return on Financial Assets | (investment income/average financial assets) x 100 = % |
| Gross Profit Margin | (Gross profit/revenue) x 100 = % |
| Mark-up Percentage | (Gross profit/cost of sales) x 100 = % |
| Operating Profit | (operating profit/revenue) x 100 = % |
| EBIT Margin | (profit before tax + finance costs/revenue) x 100 = % |
| Net Profit Margin | (profit after tax/revenue) x 100 = % |
| Current ratio | current assets/ current liability = no unit |
| Acid test ratio | (current assets - inventory - prepayments/current liability) x 100 = no unit |
| Turnover ratio of assets | net revenue/average current assets = times |
| Turnover time of assets | average current assets/net revenue x 360 = days |
| Turnover ratio of PPE | net revenue/average PPE at carrying value = times |
| Turnover time of PPE | average PPE at carrying value/net revenue x360 = days |
| Turnover ratio of trade receivables | credit revenue/average trade receivables = times |
| Turnover time of trade receivables | average trade receivables/credit revenue x360 = days |
| Turnover ratio of inventory | cost of sales/average inventory = times |
| Turnover time of inventory | average inventory/cost of sales x 360 = days |
| debt-to-asset ratio | debt capital/total assets OR debt capital/total capital = % |
| finance cost average | profit before financial cost and tax/finance costs = times |
| ordinary dividend coverage | earnings per share/dividend per share OR earnings yield/dividend yield OR (profit after tax - preference share dividends)/ordinary dividends declared = times |
| earnings per share | attributable earnings/average number of shares issued = cents |
| earnings yield | earnings per share/market prices per share = % |
| dividend per share | ordinary dividend declared/average number of ordinary shares = cents |
| dividend yield | dividend per share/market price per share = % |
| price earnings ratio | market price per share/earnings per share = no units |
| book value per share | (shareholders equity - preference shares - intangiable costs)/number of ordinary share issued = cents |
Created by:
Naledi Nyoni (Stellies)
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