Classification: UNCLASSIFIED #_x000D_

Type Sub type Calulation

The gross margin ratio indicates the profit of the firm

Gross Profit Margin% relative to sales after deducting the cost of sales (Gross Profit/Sales) *100

This ratio pertains to the relationship of profit after

Profitability

taxes to sales and is indicative of management’s

Net Profit Margin % ability to (Net Profit after tax/ Sales) *100
operate the enterprise profitably.

Return on assets (ROA) measures the efficiency of (Profit before interest and
Return on assets management in generating profits with its available tax(Operating profit) /Total
assets. assets)*100

Return on equity measures the rate of return on

Return on equity shareholders’ investment. Net Profit after tax/Equity*100

The current ratio shows the relationship between

current assets and current liabilities and is an attempt
The Current Ratio to show Current assets/Current liabilities
the safety of current debt holders’ claims in the case
of default
Liquidity

This ratio is a more stringent test of liquidity. The

intention of the acid test ratio is to test the
collectability of current (Current assets -
The Liquidity Ratio/Acid liabilities under distress conditions, on the
Stock/Inventory) / Current
Test/Quick Ratio assumption that inventories would have no value at
Liabilities
all. In the case of
a real crisis creditors may realise little cash from the
sale of inventory.

In evaluating the effectiveness of an enterprise’s

inventory management, it is common to use the
Inventory Turnover number of times Cost of Sales/Average inventory
inventory has turned over during the period of
Activity

analysis

Average inventory refer to the average of the Opening inventory+Closing

Average Inventory beginning and ending inventories. inventory/2

This ratio tells us how long trade debtors take to Accounts Recievable
Debt collection period meet their obligations to pay following the sale on
(Debtors)/Credit sales x 365
credit.

This ratio tells us how long, on average, an enterprise

takes to pay for goods bought following the purchase Accounts payable
Creditors payment period on (Creditors)/Credit purchases x 365
credit.

(Cost of sales (Credit)+Closing

Credit Purchases inventory)- Opening inventory
Debt Ratios
Classification: UNCLASSIFIED #_x000D_

Debt Ratios Total Debt Ratio/ Debt to Debt to assets ratio is used to reflect the proportion (Total debt(Non
of debt to the total claims against the assets of the current+Current)/Total
assets enterprise. assets)*100

This ratio attempts to show the relative proportions

of non-current claims to ownership claims, and is Non current
Debt to Equity used as a debt(Liabilities)/Equity *100
measure of debt exposure.

Although this ratio is not a measure of debt, it does

give some indication of a firm’s ability to cover the (Profit before interest and
Interest Cover interest tax(Operating Profit)/Interest
payments that will result from any loan agreements it Expense)*100
enters into.

The earnings per share ratio is considered to be an NPAT/Weighted average shares in

Earnings per share indicator of profitability. issue
NPAT(Profit after tax)
Weighted average shares in
issue/Number of ordinary shares
issued

Dividends are usually declared on a per share basis by Dividend for year/Weighted
Dividend per share the company’s board of directors average shares in issue
Dividend for year
Weighted average shares in
issue/Number of ordinary shares
issued

This ratio is one of the most important measures used (Market price per share/Earnings
Price Earning Ratio by investors and managers to evaluate the market
per share)*100
price of a company’s ordinary shares

Market price per share

Market

Earnings per share

The earnings yield ratio reflects the current profit- (Earnings per share/Market price
Earnings Yield generating power per ordinary share at the current
per share)
market price.

Earnings per share

Market price per share

The dividend yield ratio reflects the percentage

return that a shareholder receives by way of dividend (Dividend per share/Market price
Dividend Yield on his/her investment valued in terms of the market per share)
value of the shares in the company

Dividend per share

Market price per share
Classification: UNCLASSIFIED #_x000D_

Market Capitalization/Shares in
Market Price per share issue
Market Capitalization
Shares in issue
Classification: UNCLASSIFIED #_x000D_

Calculation Answer Where is it from

793700/1672400*100 47.46 SOCI

223050/1672400*100 13.34 SOCI

305800/1452200*100 21.06 SOCI and FP

880000/3120000*100 28.21 SOCI and FP

637900/475400 = X%:1 1.3 FP

(637900-231200)/475400 = X%:1 0.67 FP

Show as ratio

2020000/490000 = x times 4.12 FP

500000+480000/2 490000 FP

289100/1672400*365 = x days 63.10 SOCI and FP

480000/2000000*365 = x days 87.60 SOCI and FP

2020000+480000-500000 2000000 SOCI and FP

Classification: UNCLASSIFIED #_x000D_

(800000+900000)/4820000*100 35.27 FP

323700/653100*100 49.56 FP

305800/11100 = X Times 27.5495495495495 SOCI

Expressed as Currency 0.4400

R 880,000.00 37,18 CENTS SOCI

2000000.00

Expressed as Currency 1.800

R 360,000.00 17,5 Cents

200000.00 2021:  ; 2020: )

2020

Expressed as times 79.5454545454546

35.0
0.44

Expressed as % 28.6

37.18
130.0

Expressed as % 5.14285714285714

1.8
35.0
Classification: UNCLASSIFIED #_x000D_

158 000 000/1 500 000

R 158,000,000.00 105.333333333333
1500000.00
 Classification: UNCLASSIFIED #_x000D_

2021:  ; 2020: ) 51.21

60.45
Classification: UNCLASSIFIED #_x000D_

Type Sub type Calulation

The gross margin ratio indicates the profit of the firm

Gross Profit Margin% relative to sales after deducting the cost of sales (Gross Profit/Sales) *100

This ratio pertains to the relationship of profit after

Profitability

taxes to sales and is indicative of management’s

Net Profit Margin % ability to (Net Profit after tax/ Sales) *100
operate the enterprise profitably.

Return on assets (ROA) measures the efficiency of (Profit before interest and
Return on assets management in generating profits with its available tax(Operating profit) /Total
assets. assets)*100

Return on equity measures the rate of return on

Return on equity shareholders’ investment. Net Profit after tax/Equity*100

The current ratio shows the relationship between

current assets and current liabilities and is an attempt
The Current Ratio to show Current assets/Current liabilities
the safety of current debt holders’ claims in the case
of default
Liquidity

This ratio is a more stringent test of liquidity. The

intention of the acid test ratio is to test the
collectability of current (Current assets -
The Liquidity Ratio/Acid liabilities under distress conditions, on the
Stock/Inventory) / Current
Test/Quick Ratio assumption that inventories would have no value at
Liabilities
all. In the case of
a real crisis creditors may realise little cash from the
sale of inventory.

In evaluating the effectiveness of an enterprise’s

inventory management, it is common to use the
Inventory Turnover number of times Cost of Sales/Average inventory
inventory has turned over during the period of
Activity

analysis

Average inventory refer to the average of the Opening inventory+Closing

Average Inventory beginning and ending inventories. inventory/2

This ratio tells us how long trade debtors take to Accounts Recievable
Debt collection period meet their obligations to pay following the sale on
(Debtors)/Credit sales x 365
credit.

This ratio tells us how long, on average, an enterprise

takes to pay for goods bought following the purchase Accounts payable
Creditors payment period on (Creditors)/Credit purchases x 365
credit.

(Cost of sales (Credit)+Closing

Credit Purchases inventory)- Opening inventory
Debt Ratios
Classification: UNCLASSIFIED #_x000D_

Debt Ratios Total Debt Ratio/ Debt to Debt to assets ratio is used to reflect the proportion (Total debt(Non
of debt to the total claims against the assets of the current+Current)/Total
assets enterprise. assets)*100

This ratio attempts to show the relative proportions

of non-current claims to ownership claims, and is Non current
Debt to Equity used as a debt(Liabilities)/Equity *100
measure of debt exposure.

Although this ratio is not a measure of debt, it does

give some indication of a firm’s ability to cover the (Profit before interest and
Interest Cover interest tax(Operating Profit)/Interest
payments that will result from any loan agreements it Expense)*100
enters into.

The earnings per share ratio is considered to be an NPAT/Weighted average shares in

Earnings per share indicator of profitability. issue
NPAT(Profit after tax)
Weighted average shares in
issue/Number of ordinary shares
issued

Dividends are usually declared on a per share basis by Dividend for year/Weighted
Dividend per share the company’s board of directors average shares in issue
Dividend for year
Weighted average shares in
issue/Number of ordinary shares
issued

This ratio is one of the most important measures used (Market price per share/Earnings
Price Earning Ratio by investors and managers to evaluate the market
per share)*100
price of a company’s ordinary shares

Market price per share

Market

Earnings per share

The earnings yield ratio reflects the current profit- (Earnings per share/Market price
Earnings Yield generating power per ordinary share at the current
per share)
market price.

Earnings per share

Market price per share

The dividend yield ratio reflects the percentage

return that a shareholder receives by way of dividend (Dividend per share/Market price
Dividend Yield on his/her investment valued in terms of the market per share)
value of the shares in the company

Dividend per share

Market price per share
Classification: UNCLASSIFIED #_x000D_

Market Capitalization/Shares in
Market Price per share issue
Market Capitalization
Shares in issue
Classification: UNCLASSIFIED #_x000D_

Calculation Answer Where is it from

793700/1672400*100 47.46 SOCI

223050/1672400*100 13.34 SOCI

305800/1452200*100 21.06 SOCI and FP

223050/653100*100 34.15 SOCI and FP

637900/475400 = X%:1 1.3 FP

(637900-231200)/475400 = X%:1 0.86 FP

Show as ratio

878700/217100 = x times 4.05 FP

231200+203000/2 217100 FP

289100/1672400*365 = x days 63.10 SOCI and FP

108100/906900*365 = x days 43.51 SOCI and FP

878700+231200-203000 906900 SOCI and FP

Classification: UNCLASSIFIED #_x000D_

(323700+475400)/1452200*100 55.03 FP

323700/653100*100 49.56 FP

305800/11100 = X Times 27.5495495495495 SOCI

Expressed as Currency 0.3718

R 223,050.00 37,18 CENTS SOCI

600000.00

Expressed as Currency 0.175

R 105,000.00 17,5 Cents

600000.00

Expressed as times 3.4965034965035

130.0
37.18

Expressed as % 28.6

37.18
130.0

Expressed as % 13.4615384615385

17.5
130.0
Classification: UNCLASSIFIED #_x000D_

158 000 000/1 500 000

R 158,000,000.00 105.333333333333
1500000.00