Posts published in “RATIO ANALYSIS”

In order to ensure that business managers have the complete picture of a firm, considering other qualitative factors is a must-to-do job. 

Investor Ratios measure how attractive public limited companies are investors. Dividend Cover is one of them.

Investor Ratios measure how attractive public limited companies are investors. Dividend Yield is one of them.

Investor Ratios measure how attractive public limited companies are for current and future shareholders to purchase. Dividend Per Share is one of them.

Investor Ratios measure how attractive public limited companies are for investors. P/E (Price/Earnings) is one of them.

Investor Ratios measure how attractive public limited companies are for investors. EPS (Earnings Per Share) is one of them.

Interest Cover measures how many times a business could pay its Interest on the borrowed capital out of its Net Profit Before Interest and TAX.

Gearing measures how much of the capital employed in a business is financed by long-term debt, or Long-term Liabilities.

Creditor Days measures the average number of days it takes a business to pay its suppliers who gave the business trade credit.

Debtor Days measures the average number of days it takes a business to collect money from its customers who bought products on trade credit.

Stock Turnover shows the number of times a business sells its stock within one year, and the number of days it takes to sells all its stock.

Quick Ratio (Acid-Test Ratio) is ratio between the most liquid assets and Current Liabilities. It deals with the firm’s most liquid assets.

Current Ratio is ratio between Current Assets and Current Liabilities. It compares Current Assets with Current Liabilities of the business.

Return on Capital Employed (ROCE) is ratio between Net Profit Before Interest and TAX, and Capital Employed - Share Capital plus Retained Profit.