Flashcards
FA Equations
Cards in this deck (30)
- 1Return on Capital Employed ROCEOperating profit / Capital employed x 100
- 2Capital EmployedTotal Assets - Current Liabilities
- 3Operating Profit MarginOperating profit / sales x 100
- 4Asset Utilisation (Asset Turnover)Sales / Capital Employed
- 5Gross Profit MarginGross profit / sales x 100
- 6Overhead salesoverhead / sales x 100
- 7Current RatioCurrent asset / Current Liabilities
- 8Acid Test Ratio (Quick Ratio)Current assets - stock / current liabilities
- 9Stock Turnover PeriodStock / Cost of sales (Purchases) x 365
- 10Debtor Collection PeriodDebtors / sales x 365
- 11Creditors Payment PeriodCreditors / Purchases x 365
- 12Dividend Payout RationDividends for the year / Available profit for the dividends (Profit after tax) x 100
- 13Dividend Cover RatioAvailable profit for dividends (Profit after tax) / Dividends for the year x 100
- 14Dividend Yield RatioGross Dividend per share (Earnings per share) / Market Value per share
- 15Earnings Per ShareEarnings available to ordinary shareholders / Number of ordinary shares in issue
- 16Price/Earnings RatioMarket value per share / Earning per share
- 17Working CapitalCurrent Assets - Current Liabilities
- 18Stock DaysAverage stock / purchases (cost of sales) x 365
- 19Debtors DaysAverage Debtors / Credit sales x 365
- 20Creditor DaysAverage Creditors / Purchases (cost of sales)
- 21External sources of finance LTLoans
Ordinary Shares
Preference Shares
Leases - 22External sources of finance STBank overdraft
Debt factoring
Invoice discounting - 23What are ordinary shares?The most common type of share
Shows ownership of the company
Entitled to dividend
Voting rights - 24What are the preferred rights?Does not have voting rights
Receive a fixed dividend
receives dividends before ordinary shares
The company can buy shares back - 25Initial Public OfferWhen a company put shares up onto the market
- 26Rights IssuesWhen existing shareholders are given the opportunity to subscribe for more shares in proportion of their existing shares
- 27Bonus Issue (Script)When shareholders are given further shares perhaps in addition to a dividend
- 28PlacingShares are privately sold to selected individuals or institutions without a public offer
- 29Offer for saleA company sells new shares to a financial institution who sells them on to the public
- 30Internal sources of financeRetained Profit
Reduced stock levels
Delayed payment to creditors
Tighter credit control
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- Bsc Marketing Flashcards on FA Equations, created by Hollie Ferris on 05/02/2019.
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- Hollie Ferris
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