Classification: UNCLASSIFIED #_x000D_
Type Sub type Calulation
The gross margin ratio indicates the profit of the firm
Gross Profit Margin% relative to sales after deducting the cost of sales (Gross Profit/Sales) *100
This ratio pertains to the relationship of profit after
Profitability
taxes to sales and is indicative of management’s
Net Profit Margin % ability to (Net Profit after tax/ Sales) *100
operate the enterprise profitably.
Return on assets (ROA) measures the efficiency of (Profit before interest and
Return on assets management in generating profits with its available tax(Operating profit) /Total
assets. assets)*100
Return on equity measures the rate of return on
Return on equity shareholders’ investment. Net Profit after tax/Equity*100
The current ratio shows the relationship between
current assets and current liabilities and is an attempt
The Current Ratio to show Current assets/Current liabilities
the safety of current debt holders’ claims in the case
of default
Liquidity
This ratio is a more stringent test of liquidity. The
intention of the acid test ratio is to test the
collectability of current (Current assets -
The Liquidity Ratio/Acid liabilities under distress conditions, on the
Stock/Inventory) / Current
Test/Quick Ratio assumption that inventories would have no value at
Liabilities
all. In the case of
a real crisis creditors may realise little cash from the
sale of inventory.
In evaluating the effectiveness of an enterprise’s
inventory management, it is common to use the
Inventory Turnover number of times Cost of Sales/Average inventory
inventory has turned over during the period of
Activity
analysis
Average inventory refer to the average of the Opening inventory+Closing
Average Inventory beginning and ending inventories. inventory/2
This ratio tells us how long trade debtors take to Accounts Recievable
Debt collection period meet their obligations to pay following the sale on
(Debtors)/Credit sales x 365
credit.
This ratio tells us how long, on average, an enterprise
takes to pay for goods bought following the purchase Accounts payable
Creditors payment period on (Creditors)/Credit purchases x 365
credit.
(Cost of sales (Credit)+Closing
Credit Purchases inventory)- Opening inventory
Debt Ratios
Classification: UNCLASSIFIED #_x000D_
Debt Ratios Total Debt Ratio/ Debt to Debt to assets ratio is used to reflect the proportion (Total debt(Non
of debt to the total claims against the assets of the current+Current)/Total
assets enterprise. assets)*100
This ratio attempts to show the relative proportions
of non-current claims to ownership claims, and is Non current
Debt to Equity used as a debt(Liabilities)/Equity *100
measure of debt exposure.
Although this ratio is not a measure of debt, it does
give some indication of a firm’s ability to cover the (Profit before interest and
Interest Cover interest tax(Operating Profit)/Interest
payments that will result from any loan agreements it Expense)*100
enters into.
The earnings per share ratio is considered to be an NPAT/Weighted average shares in
Earnings per share indicator of profitability. issue
NPAT(Profit after tax)
Weighted average shares in
issue/Number of ordinary shares
issued
Dividends are usually declared on a per share basis by Dividend for year/Weighted
Dividend per share the company’s board of directors average shares in issue
Dividend for year
Weighted average shares in
issue/Number of ordinary shares
issued
This ratio is one of the most important measures used (Market price per share/Earnings
Price Earning Ratio by investors and managers to evaluate the market
per share)*100
price of a company’s ordinary shares
Market price per share
Market
Earnings per share
The earnings yield ratio reflects the current profit- (Earnings per share/Market price
Earnings Yield generating power per ordinary share at the current
per share)
market price.
Earnings per share
Market price per share
The dividend yield ratio reflects the percentage
return that a shareholder receives by way of dividend (Dividend per share/Market price
Dividend Yield on his/her investment valued in terms of the market per share)
value of the shares in the company
Dividend per share
Market price per share
Classification: UNCLASSIFIED #_x000D_
Market Capitalization/Shares in
Market Price per share issue
Market Capitalization
Shares in issue
Classification: UNCLASSIFIED #_x000D_
Calculation Answer Where is it from
793700/1672400*100 47.46 SOCI
223050/1672400*100 13.34 SOCI
305800/1452200*100 21.06 SOCI and FP
880000/3120000*100 28.21 SOCI and FP
637900/475400 = X%:1 1.3 FP
(637900-231200)/475400 = X%:1 0.67 FP
Show as ratio
2020000/490000 = x times 4.12 FP
500000+480000/2 490000 FP
289100/1672400*365 = x days 63.10 SOCI and FP
480000/2000000*365 = x days 87.60 SOCI and FP
2020000+480000-500000 2000000 SOCI and FP
Classification: UNCLASSIFIED #_x000D_
(800000+900000)/4820000*100 35.27 FP
323700/653100*100 49.56 FP
305800/11100 = X Times 27.5495495495495 SOCI
Expressed as Currency 0.4400
R 880,000.00 37,18 CENTS SOCI
2000000.00
Expressed as Currency 1.800
R 360,000.00 17,5 Cents
200000.00 2021: ; 2020: )
2020
Expressed as times 79.5454545454546
35.0
0.44
Expressed as % 28.6
37.18
130.0
Expressed as % 5.14285714285714
1.8
35.0
Classification: UNCLASSIFIED #_x000D_
158 000 000/1 500 000
R 158,000,000.00 105.333333333333
1500000.00
Classification: UNCLASSIFIED #_x000D_
2021: ; 2020: ) 51.21
60.45
Classification: UNCLASSIFIED #_x000D_
Type Sub type Calulation
The gross margin ratio indicates the profit of the firm
Gross Profit Margin% relative to sales after deducting the cost of sales (Gross Profit/Sales) *100
This ratio pertains to the relationship of profit after
Profitability
taxes to sales and is indicative of management’s
Net Profit Margin % ability to (Net Profit after tax/ Sales) *100
operate the enterprise profitably.
Return on assets (ROA) measures the efficiency of (Profit before interest and
Return on assets management in generating profits with its available tax(Operating profit) /Total
assets. assets)*100
Return on equity measures the rate of return on
Return on equity shareholders’ investment. Net Profit after tax/Equity*100
The current ratio shows the relationship between
current assets and current liabilities and is an attempt
The Current Ratio to show Current assets/Current liabilities
the safety of current debt holders’ claims in the case
of default
Liquidity
This ratio is a more stringent test of liquidity. The
intention of the acid test ratio is to test the
collectability of current (Current assets -
The Liquidity Ratio/Acid liabilities under distress conditions, on the
Stock/Inventory) / Current
Test/Quick Ratio assumption that inventories would have no value at
Liabilities
all. In the case of
a real crisis creditors may realise little cash from the
sale of inventory.
In evaluating the effectiveness of an enterprise’s
inventory management, it is common to use the
Inventory Turnover number of times Cost of Sales/Average inventory
inventory has turned over during the period of
Activity
analysis
Average inventory refer to the average of the Opening inventory+Closing
Average Inventory beginning and ending inventories. inventory/2
This ratio tells us how long trade debtors take to Accounts Recievable
Debt collection period meet their obligations to pay following the sale on
(Debtors)/Credit sales x 365
credit.
This ratio tells us how long, on average, an enterprise
takes to pay for goods bought following the purchase Accounts payable
Creditors payment period on (Creditors)/Credit purchases x 365
credit.
(Cost of sales (Credit)+Closing
Credit Purchases inventory)- Opening inventory
Debt Ratios
Classification: UNCLASSIFIED #_x000D_
Debt Ratios Total Debt Ratio/ Debt to Debt to assets ratio is used to reflect the proportion (Total debt(Non
of debt to the total claims against the assets of the current+Current)/Total
assets enterprise. assets)*100
This ratio attempts to show the relative proportions
of non-current claims to ownership claims, and is Non current
Debt to Equity used as a debt(Liabilities)/Equity *100
measure of debt exposure.
Although this ratio is not a measure of debt, it does
give some indication of a firm’s ability to cover the (Profit before interest and
Interest Cover interest tax(Operating Profit)/Interest
payments that will result from any loan agreements it Expense)*100
enters into.
The earnings per share ratio is considered to be an NPAT/Weighted average shares in
Earnings per share indicator of profitability. issue
NPAT(Profit after tax)
Weighted average shares in
issue/Number of ordinary shares
issued
Dividends are usually declared on a per share basis by Dividend for year/Weighted
Dividend per share the company’s board of directors average shares in issue
Dividend for year
Weighted average shares in
issue/Number of ordinary shares
issued
This ratio is one of the most important measures used (Market price per share/Earnings
Price Earning Ratio by investors and managers to evaluate the market
per share)*100
price of a company’s ordinary shares
Market price per share
Market
Earnings per share
The earnings yield ratio reflects the current profit- (Earnings per share/Market price
Earnings Yield generating power per ordinary share at the current
per share)
market price.
Earnings per share
Market price per share
The dividend yield ratio reflects the percentage
return that a shareholder receives by way of dividend (Dividend per share/Market price
Dividend Yield on his/her investment valued in terms of the market per share)
value of the shares in the company
Dividend per share
Market price per share
Classification: UNCLASSIFIED #_x000D_
Market Capitalization/Shares in
Market Price per share issue
Market Capitalization
Shares in issue
Classification: UNCLASSIFIED #_x000D_
Calculation Answer Where is it from
793700/1672400*100 47.46 SOCI
223050/1672400*100 13.34 SOCI
305800/1452200*100 21.06 SOCI and FP
223050/653100*100 34.15 SOCI and FP
637900/475400 = X%:1 1.3 FP
(637900-231200)/475400 = X%:1 0.86 FP
Show as ratio
878700/217100 = x times 4.05 FP
231200+203000/2 217100 FP
289100/1672400*365 = x days 63.10 SOCI and FP
108100/906900*365 = x days 43.51 SOCI and FP
878700+231200-203000 906900 SOCI and FP
Classification: UNCLASSIFIED #_x000D_
(323700+475400)/1452200*100 55.03 FP
323700/653100*100 49.56 FP
305800/11100 = X Times 27.5495495495495 SOCI
Expressed as Currency 0.3718
R 223,050.00 37,18 CENTS SOCI
600000.00
Expressed as Currency 0.175
R 105,000.00 17,5 Cents
600000.00
Expressed as times 3.4965034965035
130.0
37.18
Expressed as % 28.6
37.18
130.0
Expressed as % 13.4615384615385
17.5
130.0
Classification: UNCLASSIFIED #_x000D_
158 000 000/1 500 000
R 158,000,000.00 105.333333333333
1500000.00
