Ratio Analysis - formula and calculations (A Level Accounts)

Capital Gearing =

• Non Current Liabilities/ issued share capital + non current liabilities x 100

• Non Current Liabilities/ issued share capital - non current liabilities x 100

• Non Current Liabilities/ issued share capital + non current liabilities

• Non Current Liabilities/ issued share capital x 100

Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.

• liquidity ratios
• efficiency ratios
• leverage ratios
• profitability ratios

Liquid Capital/Acid Test ratio =

• (Current Assets - Closing Inventory) - Current Liabilities

• Current Assets + Current Liabilities

• (Current Assets + Closing Inventory) / Current Liabilities

• (Current Assets - Inventory) / Current Liabilities

Dividend per share / Market price per share x 100

• Dividend yield

• Dividend cover

• Interest cover

• Price Earnings

Current Ratio

• Current Assets - Current Liabilities

• Current Assets + Current Liabilities

• Current Assets / Current Liabilities

• Current Assets / Total Assets

Expenses / Revenue x 100 =

• Gross Profit margin

• Gross profit mark up

• Expenses in relation to revenue

• Profit in relation to revenue

Earnings in pence (profit after tax in pence) / Number of ordinary shares issued

• Price Earnings

• Dividend cover

• Interest cover

• Earnings per share

Gross profit margin =

• Gross Profit - Revenue x 100

• Revenue / Gross Profit x 100

• Gross Profit / Revenue x 100

• Revenue + Gross Profit x 100

Profit after interest and tax / Ordinary share dividends paid =

• Dividend yield

• Interest cover

• Dividend cover

• Earnings per share

Interest Cover =

• Profit before interest and tax / Interest payable

• Interest payable / Profit before interest and tax

• Profit after tax / Interest payable

• Profit before tax / Interest payable