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Accounting Ratios
Leaving Cert Accounting Ratios
| Question | Answer |
|---|---|
| Operating Profit | Net Profit + Interest |
| ROCE | Operating Profit/Capital Employed x 100% |
| EPS | Owners Profit/No of Ordinary Shares |
| DPS | Ordinary Dividend/No of Ordinary Shares |
| Interest Cover | Operating Profit/Interest |
| Gearing | Debt/Capital Employed x 100% |
| Current Ratio | Current Assets: Current Liabilities |
| Acid Test Ratio | `Current Assets - Closing Stock: Current Liabilities |
| REF | Owners Profit/Equity x 100% |
| P/E Ratio | Market/EPS |
| Period to Recoup | Market/DPS |
| Dividend Yield | DPS/Market x 100% |
| Dividend Cover | Owners Profit/Ordinary Dividend |
| Ordinary Dividend | Total Dividend-Preference Dividend |
| Owners Profit | Net Profit - Preference Dividend |
| Debt | Debentures + Preference Share Capital |
| Equity | Ordinary Share Capital + Profit |