ANALYSIS OF PUBLISHED ACCOUNTS

Current assets
1. Current ratio=
Current liabilities

Liquid assets
2. Acid test ratio=
Current liabilities

Liquid assets=Current assets-inventories

Gross profit
1. Gross profit Margin Ratio= ×100%
Revenue

Operating Profit (Profit ¿Operations)

2. Operating profit Margin Ratio= ×100%
Revenue

Operating profit ( profit ¿operations )

3. Return on Capital Employed Ratio= ×100%
Capital Employed

Cost of sales
1. Rate of inventory turnover=
Average inventory

Inventory at the Start of the year + Inventory at the end of the year
Average Inventory=
2
 Trade receivables
2. Trade receivables turnover= ×365
Credit sales

Trade Payables
3. Trade payables turnover= ×365
Credit Purchases

Non−Current Liablities
1. Gearing ratio= Capital Employed
×100%

Dividend Per Share

1. Dividend yield Ratio= Market Share Price ×100%

Total Annual Dividends

Dividend per share= Total Number of Issued Shares

Profit for the Year

2. Dividend Cover Ratio= Total Annual Dividends

Market Share Price

3. Price/Earnings Ratio= Earnings Per Share

Profit for the Year

Earnings Per Share= Total Number of Shares Issued