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A percentage return on capital employed ie: the profit earned on assets and cash used to produce income.
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Return on equity ie: profit earned on money invested
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Effective rates on bank overdraft ie: the average interest paid during the year on money borrowed from the bank.
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Effective rate on long term debts ie: average interest paid during the year on long term borrowing.
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Yield (cents) per R1 share capital ie: the number of cents per R1 of money invested.
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Liquidity ratios ie: is a total of cash plus debtors and plus stock, compared with money owing to suppliers.
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Acid test ratio ie: is cash plus debtors, as compared with money owing to suppliers.
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Debt coverage ratios ie: the total assets compared with total liabilities.
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Equity to long term liabilities ie: money invested against long term borrowing.
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Tangible assets to long term debts ie: hard assets such as land and buildings, compared with long term borrowing.
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Bank overdraft to current liabilities ie: money borrowed from the bank compared with the use of suppliers’ money.
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Income to interest ie: income produced compared with interest paid on borrowed money.
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Assets ratio ie: the total of hard assets such land and buildings, compared with money invested in stock, debtors and cash.
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Tangible assets to total assets ie: the total of all hard assets, such as land, buildings, equipment and machinery compared with total assets made up of debtors, stock and cash and hard assets. This will assess if the undertaking is over capitalized on hard assets.
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Protection of Shareholders ie: this is total profit earned to date, as compared with capital invested.
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Gross profit percentage to sales ie: this is the profit earned before expenses as compared with total sales. This will indicate if the undertaking is achieving the required markup.
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Net profit or loss percentage to sales ie: this is to show profit earned after expenses compared with total sales. This will indicate if the undertaking is achieving the required result.
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Operating expenses percentage to sales ie: this percentage will show the labour cost , plus other costs in order to achieve the sales level.
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Accounts receivable months allowed ie: means how many days or months for customers to pay their account.
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Accounts payable months allowed ie: means how many days or months for payment of suppliers
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Stock on hand turnover ie: means how many days or months determines stock usage
