ratios for accounting

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Last updated 7:20 AM on 5/29/26
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17 Terms

1
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return on capital employed

net profit by 100/capital employed

2
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return on shareholders funds

net profit-dividend-tax by 100 /ordinary share capital + reserves

3
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gearing ratio

preference shares + debenture + loans/capital employed

4
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interest cover

net profit + intesrest /interest

5
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current ratio

curent assets;current liabiitie

6
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acid test ratio

current asses - closing stock;current liabilties

7
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stock turnover

cost of sales/average stock

8
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debtor cellection period

debtors by 12/credit sales

9
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creditors collection period

creditors by 12/credit purchases

10
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earnings pr share

net profit - preference dividend/number of ordinary shares

11
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dividend per share

total dividend - preference dividend/number of ordinary shares

12
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earnings yeild

earigs per share by 100/share price

13
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dividend yield

dividend per share by 100/share price

14
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prie earnings ratio

share price/earnings per share

15
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period to recoup share prise

shareprice/dividend per share

16
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dividend cover

net profit-preference dividend/ordinary dividend

17
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average stock

closing +opening stock/2