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Ratios Made Simple : A beginner's guide to the key financial ratios - Robert Leach

Ratios Made Simple

A beginner's guide to the key financial ratios

Paperback Published: 30th October 2010
ISBN: 9781906659844
Number Of Pages: 176

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Ratios provide an extremely effective method of understanding company accounts. At their most basic this usually involves taking one figure from the published accounts and dividing it by another - however, this seemingly simple process can reveal an enormous amount about both the nature and performance of a company. 'Ratios Made Simple' looks at ratios from the perspective of an investor, providing a toolkit for investors to use to accurately analyse a company from its accounts. This book is divided into nine chapters, with each chapter looking at a different aspect of potential concern to an investor: 1. Profitability Ratios 2. Investment Ratios 3. Dividend Cover 4. Margins 5. Gearing 6. Solvency Ratios 7. Efficiency Ratios 8. Policy Ratios 9. Volatility For each ratio, financial expert Robert Leach provides a detailed definition, explains how it works, describes its use. Investors are also given a simple explanation of how to calculate each ratio, what the ratio means and how the investor should apply the answers in making investment decisions. This book provides the investor with an essential guide to the use of these powerful analytical tools - tools that should form a vital part of an investor's decision-making process.

About the Authorp. v
Introductionp. vii
Profitability Ratiosp. 1
Earnings Per Share (EPS)p. 3
Price-to-Earnings Ratio (P/E)p. 13
Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortisation Ratio (EV/EBITDA)p. 21
Price-to-Sales Ratio (PSR)p. 25
Investment Ratiosp. 29
Dividend Yieldp. 31
Total Returnp. 37
Return On Capital Employed (ROCE)p. 41
Return On Equity (ROE)p. 47
Premium to Asset Value (PAV)p. 51
Internal Rate of Return (IRR)p. 55
Return On Assets (ROA)p. 59
Dividend Payout Ratiop. 61
Dividend Coverp. 63
Dividend Coverp. 65
Marginsp. 69
Gross Margin and Net Marginp. 71
Overheads to Turnoverp. 77
Gearingp. 79
Gearing Ratiop. 81
Interest Coverp. 89
Solvency Ratiosp. 93
Acid Testp. 95
Current Ratiop. 99
Cash Burnp. 101
Defensive Intervalp. 105
Fixed Charges Coverp. 107
Efficiency Ratiosp. 109
Stock Turnp. 111
Price-to-Book Value (PBV)p. 115
Overtrading and Undertradingp. 117
Item Comparisonp. 121
Policy Ratiosp. 125
Creditor Periodp. 127
Debtor Periodp. 131
Fixed Asset Spending Ratiop. 133
Volatilityp. 137
Volatility Ratiop. 139
Standard Deviationp. 143
Appendixp. 149
Indexp. 155
Table of Contents provided by Ingram. All Rights Reserved.

ISBN: 9781906659844
ISBN-10: 1906659842
Audience: General
Format: Paperback
Language: English
Number Of Pages: 176
Published: 30th October 2010
Publisher: Harriman House Publishing
Country of Publication: GB
Dimensions (cm): 21.6 x 14.0  x 0.9
Weight (kg): 0.23