Re: ::: vuaskari.com ::: Build Finance Field Concepts for ViVa-- Share Material Pls

Financial Ratio Formulas

You must learn all of these by heart for viva & presentation

 

Ø  Current Ratio;

Formula;

Current Assets / Current liabilities

 

Acid test Ratio:

Formula;

Acid Test Ratio = (Current Assets – Inventory- prepayments) / Current Liabilities

 

Ø  Net Working Capital;

Formula;

Working Capital = Current Assets – Current Liabilities

Ø  Time interest earned ratio;

Formula;

EBIT / Total interest

 

Ø  Debt ratio;

Formula;         

Total debt / Total assets

Ø  Debt / Equity Ratio;

Formula;

Total debt / Total equity

Ø  Debt To Tangible Net Worth Ratio;

Formula;

Total Liabilities / (Net worth or Equity - Net Intangible Assets)

 

 Total Capitalization Ratio:

Formula;

Long term debt / (long term debt + shareholders Equity)

 

Ø  Net Profit Margin Ratio;

. Formula;

Net profit after tax / Sales*100

Ø  Return on Assets;

Formula;

EBIT / total assets*100

Ø  DuPont Return on Assets

. Formula;

(Net Income/ Sales) * (Sales / Total Assets) * 100

Ø  . Operating Income Margin:

 Formula;

Operating Income or EBIT / Net Sales*100

Ø  . Return on Operating Assets:

Formula;

EBIT / Operating Assets*100

 

Ø  . Return on Total Equity:

 

Formula;

Profit after tax / Total Equity*100

Ø  . Gross Profit Margin:

Formula;

Gross Profit / Sales*100

Ø  Total Assests turnover;

Formula;

Net Sales / Total assets

Ø  Fixed Assets Turnover;

Formula;

               Net Sales/ Fixed Assets

Ø  . Dividend Per Share;

Formula;

Annual Dividends / Outstanding Shares

Ø  .Earning Per Share;

Formula;

Net income after tax / Outstanding Shares

Ø  .Price / Earning Ratio;

Formula;

Stock Price / EPS

 

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