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16 Cards in this Set
- Front
- Back
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ROCE
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NPBIT / Tot Assets
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ROS
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NPBIT / Sales
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AT
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Sales / Tot Assets
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Current Ratio
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Cur Assets / Cur Liabs
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Quick Ratio ( Acid Test)
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(Cur Assets - Stock) / Cur Liabs
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Debtor Turnover
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Debtors / Credit Sales
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Creditor Turnover
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Trade Creditors / Credit Purchases
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Stock Turnover
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Stock / Cost of Sales
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Gearing
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LT Debt / Shareholders Funds
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EPS
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Earnings per Ordinary Shareholders / # Ordinary Shares
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PE Ratio
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Market Price / EPS
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Div Yield
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DPS / Market Price
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Div Cover
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EPS / DPS
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Limitations
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Ratios: Need to be comparable
Acctg Info: Be careful of difference btw Historical and Current Cost Creative Acctg: Manipulation of financial figures to meet certain targets (i.e. Paying high bonuses, manipulating sales, Giving director benefits, concealing special charges) |
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KPI's
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Value Measures - CF are more important than profits
Shareholder Value Analysis Economic Value Added - Discounted CF's provide better indication |
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Historical Cost Acctg.
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1. Recording money at actual costs
2. Advantage of HCA: Values are certain and fit in CF Statement 3. Disad of HCA: Values can be very old and will distort actual values 4. Inflation acctg is difficult and generally not used in practice |
