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Other Lesson: Unit 3 Ratios

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Created by: mattashdene
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Card # English English Image
1 (Dividend per share / Market share price) x 100 Dividend Yield =
2 (Payables x 365 days) / credit purchases Payables Days =
3 (current assets - inventories) / current liabilities Acid Test Ratio =
4 (receivables x 365 days) / revenue Receivables Days =
5 Cost of sales / inventory Inventory Turnover =
6 Current assets / current liabilities Current Ratio =
7 Operating profit / (total equity + non-current liabities) x 100 ROCE =
8 Operating profit / Sales revenue x 100 OPM =
9 Sales / net assets Asset Turnover =
10 a business' ability to meet short-term cash payments on time Liquidity Ratio
11 a calculation of how many pence per share a shareholder can expect to receive in dividends Dividend Per Share (DPS)
12 a measure of the ability of a business to meet short-term debts Current Ratio
13 a measure of the average no. of days taken by a business to collect its debts from its customers Receivables (debtor) days:
14 a measure of the average no. of days taken to pay suppliers Payables (creditor) days
15 a measure of the dividend received as a rate of return compared to the current market share price Dividend Yield
16 a measure of the percentage of a firm's capital that is financed by long-term loans Gearing Ratio
17 allows for the analysis of a firm's profits in relation to either its trading performance or the capital utilised in generating that profit Profitability Ratios
18 expresses the relationship between operating profit and sales revenue Operating Profit Margin (OPM)
19 measure of how many times per year a business turns over its stock through sales Inventory Turnover
20 measure of the ability of a business to meet short-term debts Acid Test Ratio
21 measures how effectively a business is using its assets to generate sales Asset Turnover
22 non-current liabilities / (total equity + non- current liabilities) x 100 Gearing Ratio =
23 the primary efficiency ratio as it shows the overall performance of a business expressed as a percentage of the total long-term capital invested in to it Return On Capital Employed (ROCE)
24 to assess how efficiently management are controlling the financial operations of the business Financial Efficiency Ratios
25 total dividends / no. of issued shares Dividend Per Share =

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