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31 Cards in this Set
- Front
- Back
- 3rd side (hint)
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Profitability Ratios |
ROCE, ROE, Asset Turnover |
Three of them |
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ROCE |
Operating Profit/Capital Employed x100 |
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ROE |
Net Profit/Equity x100 |
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Asset Turnover |
Revenue/Capital Employed x100 |
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Lender Ratios |
Capital Gearing, Interest cover, Debt ratio |
Three of them |
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Capital Gearing |
Debt/(Debt + Equity) |
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Interest cover |
Profit before interest and tax/Interest payable |
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Debt ratio formula |
Total long term debt/Total Assets |
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Investor ratios |
Earnings per share, P/E ratio, dividend payout, dividend yield, dividend cover |
Five of them |
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P/E ratio |
Share price/EPS |
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Earnings per share |
Earnings after interest, tax and preference share/number ordinary shares |
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Dividend payout rate |
Dividend per share/EPS |
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Dividend yield |
Dividend per share/Current share price |
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Dividend cover |
Earnings per share/Dividends per share |
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Earnings yield |
Reciprocal of the P/E ratio |
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Global Reporting Initiative / G4 guidelines |
The principles help users monitor the performance from economic, environmental and social perspective. Help define report content, quality of the report, and set boundaries. |
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G4 guidelines - Principles for defining report content |
Stakeholder inclusiveness Sustainability context Materiality Completeness |
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G4 Guidelines - Principles of report quality |
Balance Comparability Accuracy Timeliness Clarity Reliability |
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G4 guidelines - General standard disclosures |
Strategy and analysis Organizational profile Identified material aspects and boundaries Stakeholder engagement Report profile Governance Ethics and integrity |
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G4 Guidelines - Specific standard disclosures |
Disclosure on management approach and indicators |
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Global Integrated Report - Process |
Identification Prioritisation Validation Review |
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Integrated reporting three concepts |
Value creation The capitals The value creation process |
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Capitals of integrated reporting |
Financial, manufactured, intellectual, human, social, natural |
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Capital market functions |
Primary - enable companies to raise finance Secondary - enable investors to sell their investments to others |
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Theoretical value of rights per share |
(Theoretical ex rights price - Issue Price)/N Where N is the number of rights required to buy 1 share |
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Fixed charge vs floating charge |
Fixed charge is when a debt is secured against a specific asset, floating charge is when the debt is secured against the general assets of the business |
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Debt finance risks |
Interest rate risk Refinancing risk Currency risk |
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Two forces on WACC |
Downward force is driven by debt being cheaper than equity and would cause the WACC to fall. Upward force is driven by ke increasing because of financial risk. |
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Rank in terms of risk the types of finance: |
Ordinary > Preference > Unsecured bonds > Secured Bonds |
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Market maker |
Has to be a member firm of the London stock Exchange, authorised to deal in bonds and quotes two way prices for the bonds |
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Warrant |
An option to buy shares at a specified point in the future for a specified price |
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