Alll your study units in one excel document with formulas and notes linked to each study unit. extractions from different question papers and memo calculations all in one documents. Distinction 100% pass material.
Gross profit % (Margin) Gross profit / Sales x 100 Calcu 1
Operating profit margin Operating profit/ Revenue x 100
Net profit % (Margin) Net profit after tax / Sales(revenue) x 100 Calc u2
Current ratio Current assets /Current liabilities Calcu 3
Liquid asset ratio or Acid test Ratio Current assets - Inventory /Current liabilities Calcu 4
Inventory turnover Cost of sales / Average inventory Calcu 5
Debtors collection period Accounts receivable / Credit sales x 365 Calcu 6
Creditors payment period Accounts payable / Credit purchases x 365 Calcu 7
Earnings per share (EPS) Profit after tax / number of shares issued x 100 Calcu 8
Return on equity (ROE) Net profit after tax / Total equity x 100 Calcu 9
Return on Assets (ROE) (Asset turnover) Operating Profit /Total Assets x 100 Calcu 11
Long-term interest bearing debt (including its current
Debt to equity ratio portion):Equity
Total assets to total debt ratio Total assets/Total Debt Calcu 10
Debt to assets Debt ratio (or gearing) Total Debt /Total assets x 100
Debt to Equity Non current Debt /Equity x 100 Calcu 12
Dividends per Share (DPS) Dividends for year /Number of shares issued x100 Calcu 14
Dividend payout ratio Dividends per share/ earnings per share
Price /Earnings Ratio Market price share/Earnings per share Calcu 15
Earnings Yield Earnings per share /Market price share x 100 Calcu 16
Dividends Yield Dividends per share/Market share price x 100 Calcu 17
1. Profitability Ratios
1.Growth in turnover ( current year - previous year) / Previous year
2. Growth in gross/ net profit ( current year – previous year) / previous year
3. Increase/ decrease in operating costs ( current year – previous year) / previous year
, 4. Operating costs as % of turnover Operating costs/ Turnover
8. Net profit margin Net profit before or after tax/ Revenue
9. Effective interest rate Total interest/ interest bearing debts
10. interest cover EBIT/ interest paid
11. Earnings per share Earnings after tax and preference dividends/ number of
shares in issue
12. ROCE( return on capital employed) EBIT/ long- term debt + equity
13. Operating leverage Contribution/ EBIT
14. Operating cash flow to income Operating cash flow/ net profit
15. Book value per share Ordinary equity / number of shares in issue
2. Liquidity
1. current ratio Current assets /current liabilities
2. Quick / acid test ratio Current assets- inventory / current liabilities
3. operating cash flow to current liabilities Operating cash flow/ current liabilities
3. Working capital
Cash and cash equivalent + marketable securities/
1. cash ratio
current liabilities
2. Receivables collection period Accounts receivables /credit sale x 365
3. inventory turnover period Inventory/ cost of sales x365
Or inventory turnover ratio Cost of sales/ inventory
4.Creditors collection period Accounts payable/ credit purchases x 365
Receivables collection period + inventory turnover
5. Cash operating cycle
period – creditors payment period
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