1. Current ratio = CA/CL 2. Liquid ratio = (CA- Prepayment-inventory)/CL Gearing ratios 1. Gearing = TL/TA 2. Gearing = TL/TE 3. Interest Cover ratio = Operating Profit/Interest Investor ratios 1. EPS = NPAT/No of ordinary shares 2. PE ratio = Market share price/EPS 3. Divi...
Home›Finance›Financial Ratio Analysis›Price Earnings P/E Ratio The price earnings ratio, often called the P/E ratio or price to earnings ratio, is a market prospect ratio that calculates the market value of a stock relative to its earnings by comparing the market price per share by ...
The margin of safety is a financial ratio that measures the amount of sales that exceed thebreak-even point. In other words, this is the revenue earned after the company or department pays all of its fixed and variable costs associated with producing the goods or services. You can think of...
But to reiterate, performing diligence on a potential stock requires a blend of qualitative and quantitative analysis to support the investment thesis, rather than one financial ratio to measure a company’s financial position and long-term outlook. Trailing vs. Forward P/E Ratio: What is the Di...
Dividend Payout Ratio Template See all accounting resources See all valuation resources Additional Resources CFI is a global provider offinancial modeling coursesand of theFMVA Certification. CFI’s mission is to help all professionals improve their technical skills. If you are a student or looking ...
An excessive dividend payout ratio can reflect increased risk, says Ayako Yoshioka, a chartered financial analyst and senior portfolio manager at Wealth Enhancement Group. "A high dividend payout ratio becomes problematic because it implies that a significant portion of net income is being paid out...
The Sortino ratio serves a similar purpose to the more popular Sharpe ratio, but it focuses on downside risk.
10、ed assets depreciation rate = average net fixed assets divided by average fixed assets by 100%Two, the commonly used financial indicators specific application analysis1, liquidity ratioLiquidity is the ability of an enterprise to generate cash. It depends on the amount of liquid assets that ca...
though the terms of payment vary greatly. These variances can impact a business’s ability to meet their cash flow needs, pursue new financial ventures, and otherwise continue operating efficiently. Calculating the receivables turnover ratio regularly can help companies track their payment collection ef...
the net margin is a key indicator of a company’s profitability and can be used to determine whether a business’s strategy is working or whether changes to increase profitability are needed. For investors, a healthy and stable net profit margin is a positive sign of financial strength and op...