Ratios

Topics: Generally Accepted Accounting Principles, Financial ratios, Revenue Pages: 3 (336 words) Published: March 9, 2015
Liquidity Ratios: Current Ratio = Current Assets/Current Liabilities Efficiency Ratios Asset Turnover Ratio = Sales Revenue/ (Fixed Assets + Current Assets)

Profitability Ratios Net Profit Margin = (Net Profit x 100) /Sales Revenue Return on Capital Employed = Net Profit (Operating Profit) x 100 (ROCE) Capital Employed

Solvency Ratios Gearing Ratio = Total Liabilities/Shareholders Equity

Investment Ratios Earnings per Share (EPS) = Net Income – Dividends on preferred stock Average Outstanding Shares Price/Earnings Ratio (P/E) = Market Price of Share/EPS

Aviation Industry Specific Ratios…
Available Seat Miles = Total No. of Seats Available for Transporting Passengers (ASM) x No. of Miles Flown during Period

Revenue Passenger Mile = No. of Revenue Paying Passengers x
(RPM) No. of Miles Flown During Period Load Factor
Quick/Acid Test Ratio = Current Assets less Stock/Current Liabilities Dividend Yield = Annual Dividends per Share
Price per Share

Liquidity Ratios
Current Ratio = Current Assets/ Current Liabilities
Quick Ratio = Current Assets – Inventories / Current Liabilities
12
5.2 Efficiency Ratios
Asset Turnover = Revenue/ Assets
12
5.3 Profitability Ratios
Net Profit Margin = Net Profit/ Net Revenue
ROCE = EBIT/ Total Assets – Current Liabilities
13
5.4 Solvency Ratios
Gearing Ratio = Total Liability/ Shareholders Equity
13
5.5 Investment Ratios
EPS = Net Income – Dividend on Preferred Stock/ Average Outstanding Shares
13
5.6Industry Specific Ratios
Revenue per Passenger Mile = No of Revenue Paying Passengers x No of Miles Flown Available Seat Miles = No of Miles Flown x...
Continue Reading

Please join StudyMode to read the full document

You May Also Find These Documents Helpful

  • Essay on Ratio Analysis
  • Patton Fuller Ratio Essay
  • Ratio And Comparative Analysis Research Paper
  • Significance & Limitation of Ratio Analysis Essay
  • Importance of Ratio Analysis Essay
  • Ratio Comparisons: Albertson's vs. Kroger Company Essay
  • Essay on Lowes Ratio Analysis
  • Ratio Analysis Essay

Become a StudyMode Member

Sign Up - It's Free