Financial Performance Indicators

Ratio analysis
Trend analysis

Measuring profitability
Return on capital employed
Asset turnover
Net profit margin
Gross profit margin

Measuring risk
Financial gearing debt/equity *100
Interest cover PBIT/interest paid
Dividend cover Earnings after tax and preference dividends/ ordinary dividend
Operating gearing Fixed cost/ Total cost
The higher the proportion of fixed cost, the higher the operating gearing

Measuring liquidity
Current ratio
Quick ratio
Receivable collection period
Payable collection period
Inventory holding period
debt/ (debt+equity) *100
times
times