Industrial Average Ratios

1865 WordsJan 31, 20108 Pages
Return on capital employed =Net profit percentage =Gross Profit percentage =Asset turnover = timesFixed Asset turnover = timesStock turnover period = daysDebtor's collection Period = daysCreditors payment period = daysCurrent Ratio = timesLiquidity Ratio =Gearing =Interest cover = timesEarning per share = £2,125/per shareDividend Yield =Dividend Cover = timesPrice Earning Ratio =Return on Equity =Return on Capital Employed: Profit calculated before interest and tax, divided by the difference between total assets and current liabilities. The ratio calculated shows the expansion that capital generates revenue ( The ROCE ratio, expressed as a percentage, implements the return…show more content…
This may happen because there is not enough money due to are not paid from the customers or the revenues are not enough. Current Ratio: measures if company can pay its short-term responsibilities. It is used to show if the company has the ability to pay back his short-term liabilities. As high the current ratio is so accomplished is the company to pay. When the ratio is less than 1 it means that the company can not pay its obligations ( SYS plc is higher than Industrial average. SYS plc is more capable to pay of its obligations than the industrial average, and is in good financial healthLiquidity Ratio: It measures a company's ability to pay off its cash. The higher the value of the ratio, the larger the margin of safety is ( If the value is greater than 1.00, it means fully covered. SYS plc is lower than industrial average but is greater than 1.00 which means full cover. Gearing: measures the level in which company's activities are funded by its capital versus creditor's funds ( Industrial average which is in 35% is riskier than SYS plc which has 26%. Industrial average is in danger because it has to continue debt whereas the sales are bad. Interest Cover: Measures how easily a firm can pay interest on outstanding debt
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