BUSS3 Formulae

Current ratio:Current assets / Current liabilitiesAcid test ratio:Liquid assets / Current liabilities[where "liquid assets are current assets - inventories (stock)]Return on capital employed (ROCE):Operating profit / (total equity + non-current liabilities**)** where this equals capital employedAsset turnover: Revenues (Sales) / Net assetsInventory (stock) turnoverCost of sales / Average inventories (stock) heldPayables (creditor) days(Payables* / Cost of sales) x 365* Payables = creditors throughout this formulaReceivables (debtor) days(Receivables* / Revenues) x 365* Payables = debtors throughout this formulaGearing:Non-current liabilities / (Total equity + non-current liabilities *)   x 100** Where this equals capital employedDividend per share (in pence)Total dividends / Number of issued ordinary sharesDividend yield (%):(Ordinary share dividend (in pence) / Current market price (in pence)) x 100

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