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RATIOS - Coggle Diagram
RATIOS
Efficiency ratios
Asset turnover (times)
Revenue / (debt + equity)
Non-current assets turnover (times)
Revene / non current assets
Inventory holding period (days)
Inventory / cost of goods sold * 365
Inventories turnover (times)
Cost of goods sold / inventory
Rate of collection of trade receivables (days)
Trade receivables / credit sales (or revenue) * 365
Rate of payment of trade payables (days)
Trade payables / credit purchases (cost of goods sold) * 365
Working capital cycle (days)
Inventory holding period + trade receivables collection period - trade payables payment period
Profitability ratios (%)
Return on capital employed
(Operating profit / debt + equity) * 100
Return on shareholders equity
Net profit / equity * 100
Gross profit margin
Gross profit / revenue * 100
Operating profit margin
Operating profit / revenue * 100
Net profit margin
Net profit / revenue * 100
Return on total assets
Operating profit / total assets * 100
Investment ratios
Earnings per share (pence or £)
Net profit / outstanding shares
Price / earnings ratio (times)
Market price per share / earnings per share
Dividend yield (%)
Dividends per share / market price per share * 100
Dividend payout ratio (%)
Equity share dividends paid in the year / profit for the year * 100
Dividend cover (times)
Profit for the year / equity share dividends paid in the year
Gearing ratios
Capital gearing (%)
(Debt / (debt + equity) * 100
Equity gearing (%)
Debt (borrowings + reference shares) / equity * 100
Interest cover (times)
(PBIT / interest expense)
Interest gearing (%)
Debt interest + preference share dividends / operating profit + investment income * 100
Liquidity ratios
Current ratio (x1:)
Current assets / current liabilities
Quick ratio (x1:)
(Current assets - inventories) / current liabilities