Financial ratios are powerful tools to help summarise financial statements and the health of a company.
They enable the business to ensure it is running at the optimum efficiency by calculating working capital, pricing structures, profit margins and efficiency of assets used.
An analysis is normally done on the past performance of a business with future performance then be forecast. The gap analysis between the two sets of figures highlights potential efficiencies, to be made, resulting in cost reductions and increases to the bottom line.
The Achieve Corporation Ratios and Statistics analysis includes:
Profitability
- EBIT
- EBITDA
- Adjusted EBITDA
- ROA
- ROCE
- ROE
- Gross Profit Ratio
- Operating Profit Ratio
- Pre-tax Profit Ratio
- Net Profit Ratio
Liquidity
- Current Ratio
- Quick Ratio
- Working Capital
- Working Capital Ratio
Solvency/Leverage
- Debt Equity (DE) Ratio
- TOL/TNA
- Capital Gearing Ratio
- Degree of Operating Leverages (DOL)
- Degree of Financing Leverages (DFL)
- Debt Service Coverage Ratio (DSCR)
- Future Capital Pricing Based on ROCE
Efficiency
- Debtors Turnover Ratio
- Debtors Days
- Capital Turnover Ratio
- Future Capitalisation based on Capital Turnover
Valuation
- Earnings Per Share (EPS)
- Price Earnings (PE) Ratio
- Market Value based on Price Earnings Ratio
- Future Earning Per Share
- Net Asset Value (NAV)
- Book Value Per Share
- Intrinsic Value Per Share
- Free Cash Flow
- Discounted Cash Flow on Forecast Period