Scribd Logo
Upload

Welcome to Scribd!

  • Equation

    Uploaded by

    Rosa Nugraheni
    9 views1 page
    The document defines and explains several financial ratios used to evaluate company performance, including operating margin, earnings per share, equity per share, capital turnover ratio, return on net assets, return on assets, return on equity, net debt, net debt/equity ratio, and debt/equity ratio. It also notes that higher return on net assets indicates more efficient use of assets and working capital, and that net debt measures a company's ability to repay debts if due immediately.

    Original Description:

    Original Title

    equation.docx

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Report this Document
    The document defines and explains several financial ratios used to evaluate company performance, including operating margin, earnings per share, equity per share, capital turnover ratio, return on net assets, return on assets, return on equity, net debt, net debt/equity ratio, and debt/equity ratio. It also notes that higher return on net assets indicates more efficient use of assets and working capital, and that net debt measures a company's ability to repay debts if due immediately.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    9 views1 page

    Equation

    Uploaded by

    Rosa Nugraheni
    The document defines and explains several financial ratios used to evaluate company performance, including operating margin, earnings per share, equity per share, capital turnover ratio, return on net assets, return on assets, return on equity, net debt, net debt/equity ratio, and debt/equity ratio. It also notes that higher return on net assets indicates more efficient use of assets and working capital, and that net debt measures a company's ability to repay debts if due immediately.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as docx, pdf, or txt
    of 1

    Operating margin = operating income / net sales

    Earning per share= (net income – deviden paid) / outstanding share

    Equity per share = (outstanding share – preferred stock) / outstanding share

    Capital turnover ratio = Net Sales / (current asset – current liabilities)

    Return on net asset = EAT / (Fixed Asset +(current asset – current liabilities)

    Higher RONA means that the company is using its assets and working capital efficiently and
    effectively.

    Return on asset = EAT / ((beginning asset – ending asset) / 2)

    Return on equity = EAT / Total Equity

    Net debt = Short-Term Debt + Long-Term Debt - Cash and Cash Equivalents

    Net debt is a measure of a company's ability to repay its debts if they were all due today

    Net debt / equity = (Short-Term Debt + Long-Term Debt - Cash and Cash Equivalents) / total equity

    Debt / equity = total liabilities / total equity

    items affecting comparability for restructuring charges

    You might also like