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    Formula Sheet

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    sai
    This document defines 25 financial ratios used to analyze a company's financial statements and performance. The ratios measure metrics such as profitability, efficiency, liquidity, leverage, valuation and operating performance. Examples include gross profit margin, net profit margin, current ratio, inventory turnover, price to earnings ratio, gearing ratio, break even point and contribution margin.

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    Formula Sheet

    Uploaded by

    sai
    28 views2 pages
    This document defines 25 financial ratios used to analyze a company's financial statements and performance. The ratios measure metrics such as profitability, efficiency, liquidity, leverage, valuation and operating performance. Examples include gross profit margin, net profit margin, current ratio, inventory turnover, price to earnings ratio, gearing ratio, break even point and contribution margin.

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    © © All Rights Reserved

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    This document defines 25 financial ratios used to analyze a company's financial statements and performance. The ratios measure metrics such as profitability, efficiency, liquidity, leverage, valuation and operating performance. Examples include gross profit margin, net profit margin, current ratio, inventory turnover, price to earnings ratio, gearing ratio, break even point and contribution margin.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    28 views2 pages

    Formula Sheet

    Uploaded by

    sai
    This document defines 25 financial ratios used to analyze a company's financial statements and performance. The ratios measure metrics such as profitability, efficiency, liquidity, leverage, valuation and operating performance. Examples include gross profit margin, net profit margin, current ratio, inventory turnover, price to earnings ratio, gearing ratio, break even point and contribution margin.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
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    of 2

    𝑜𝑟𝑖𝑔𝑖𝑛𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑎𝑠𝑠𝑒𝑡 −𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑟𝑒𝑠𝑖𝑑𝑢𝑎𝑙 𝑣𝑎𝑙𝑢𝑒

    1. 𝑆𝑡𝑟𝑎𝑖𝑔𝑕𝑡 𝑙𝑖𝑛𝑒 𝑑𝑒𝑝𝑟𝑒𝑐𝑖𝑎𝑡𝑖𝑜𝑛 = 𝑒𝑥𝑝𝑒𝑐𝑡𝑒𝑑 𝑢𝑠𝑒𝑓𝑢𝑙 𝑙𝑖𝑓𝑒 𝑜𝑓 𝑎𝑠𝑠𝑒𝑡 𝑦𝑒𝑎𝑟𝑠


    𝑔𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡
    2. 𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 % = 𝑠𝑎𝑙𝑒𝑠 × 100
    𝑟𝑒𝑣𝑒𝑛𝑢𝑒
    𝑛𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡
    3. 𝑁𝑒𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑚𝑎𝑟𝑔𝑖𝑛 % = 𝑠𝑎𝑙𝑒𝑠 × 100
    𝑟𝑒𝑣𝑒𝑛𝑢𝑒
    𝑛𝑒𝑡 𝑜𝑟 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡
    4. 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑟𝑎𝑡𝑖𝑜 % = × 100
    𝑐𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑒 𝑑
    𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑡𝑠
    5. 𝐶𝑢𝑟𝑟𝑒𝑛𝑡 𝑟𝑎𝑡𝑖𝑜 = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑙𝑖𝑡𝑖𝑒𝑠
    𝑙𝑖𝑞𝑢𝑖𝑑 𝑎𝑠𝑠𝑒𝑡
    6. 𝐴𝑐𝑖𝑑 𝑡𝑒𝑠𝑡 𝑟𝑎𝑡𝑖𝑜 = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
    7. 𝐿𝑖𝑞𝑢𝑖𝑑 𝑎𝑠𝑠𝑒𝑡𝑠 = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑎𝑠𝑠𝑒𝑠𝑡𝑠 − 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠
    𝑐𝑜𝑠𝑡 𝑜𝑓 𝑔𝑜𝑜𝑑 𝑠𝑜𝑙𝑑
    8. 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 = 𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑖𝑒𝑠
    𝑣𝑎𝑙𝑢𝑒 𝑜𝑓 𝑖𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦
    9. 𝐼𝑛𝑣𝑒𝑛𝑡𝑜𝑟𝑦 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 𝑑𝑎𝑦𝑠 = × 365
    𝑐𝑜𝑠𝑡 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠
    𝑎𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑖𝑒𝑣𝑎𝑏𝑙𝑒
    10. 𝐷𝑎𝑦𝑠 𝑠𝑎𝑙𝑒𝑠 𝑖𝑛 𝑟𝑒𝑐𝑖𝑒𝑣𝑎𝑏𝑙𝑒 𝑟𝑎𝑡𝑖𝑜 = × 365
    𝑠𝑎𝑙𝑒𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟
    𝑠𝑎𝑙𝑒𝑠 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟
    11. 𝐴𝑐𝑐𝑜𝑢𝑛𝑡𝑠 𝑟𝑒𝑐𝑖𝑒𝑣𝑎𝑏𝑙𝑒 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 = 𝑡𝑟𝑎𝑑𝑒 𝑟𝑒𝑐𝑖𝑒𝑣𝑎𝑏𝑙𝑒
    𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑠𝑕𝑎𝑟𝑒
    12. 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑦𝑖𝑒𝑙𝑑 𝑟𝑎𝑡𝑖𝑜 % = 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 × 100
    𝑠𝑕𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒
    𝑡𝑜𝑡𝑎𝑙 𝑎𝑛𝑛𝑢𝑎𝑙 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
    13. 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑝𝑒𝑟 𝑠𝑕𝑎𝑟𝑒 = 𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑖𝑠𝑠𝑢𝑒𝑑 𝑠𝑕𝑎𝑟𝑒𝑠
    𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓𝑡𝑒𝑟 𝑡𝑎𝑥 𝑎𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
    14. 𝐷𝑖𝑣𝑖𝑑𝑒𝑛𝑑 𝑐𝑜𝑣𝑒𝑟 𝑟𝑎𝑡𝑖𝑜 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑑𝑖𝑣𝑖𝑑𝑒𝑛𝑑𝑠
    𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑠𝑕𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒
    15. 𝑃𝑟𝑖𝑐𝑒 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑟𝑎𝑡𝑖𝑜 = 𝑒𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠𝑕𝑎𝑟𝑒
    𝑝𝑟𝑜𝑓𝑖𝑡 𝑎𝑓 𝑡𝑒𝑟 𝑡𝑎𝑥
    16. 𝐸𝑎𝑟𝑛𝑖𝑛𝑔 𝑝𝑒𝑟 𝑠𝑕𝑎𝑟𝑒 =
    𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑕𝑎𝑟𝑒𝑠
    𝑙𝑜𝑛𝑔 𝑡𝑒𝑟𝑚 𝑙𝑜𝑎𝑛𝑠
    17. 𝐺𝑒𝑎𝑟𝑖𝑛𝑔 𝑟𝑎𝑡𝑖𝑜 % = 𝑐𝑎𝑝𝑖𝑡𝑎𝑙 × 100
    𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑
    18. 𝐶𝑎𝑝𝑖𝑡𝑎𝑙 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 = 𝑠𝑕𝑎𝑟𝑒 𝑕𝑜𝑙𝑑𝑒𝑟𝑠 𝑒𝑞𝑢𝑖𝑡𝑦 + 𝑛𝑜𝑛 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑙𝑖𝑎𝑏𝑖𝑙𝑖𝑡𝑖𝑒𝑠
    𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡 𝑝𝑟𝑜𝑓𝑖𝑡 𝑏𝑒𝑓𝑜𝑟𝑒 𝑡𝑎𝑥 𝑎𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
    19. 𝐼𝑛𝑡𝑒𝑟𝑒𝑠𝑡 𝑐𝑜𝑣𝑒𝑟 = 𝑎𝑛𝑛𝑢𝑎𝑙 𝑖𝑛𝑡𝑒𝑟𝑒𝑠 𝑡 𝑟𝑎𝑡𝑒
    𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡
    20. 𝐵𝑟𝑒𝑎𝑘 𝑒𝑣𝑒𝑛 = 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡
    21. 𝐶𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 = 𝑠𝑒𝑙𝑙𝑖𝑛𝑔 𝑝𝑟𝑖𝑐𝑒 − 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡
    22. 𝑇𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 = 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡 + 𝑣𝑎𝑟𝑖𝑎𝑏𝑙𝑒 𝑐𝑜𝑠𝑡
    23. 𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑡𝑜𝑡𝑎𝑙 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡
    24. 𝑃𝑟𝑜𝑓𝑖𝑡 = 𝑡𝑜𝑡𝑎𝑙 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑛𝑡𝑟𝑖𝑏𝑢𝑡𝑖𝑜𝑛 − 𝑓𝑖𝑥𝑒𝑑 𝑐𝑜𝑠𝑡
    25. 𝑀𝑎𝑟𝑘𝑒𝑡 𝑐𝑎𝑝𝑖𝑡𝑎𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑖𝑠𝑠𝑢𝑒𝑑 𝑠𝑕𝑎𝑟𝑒𝑠 × 𝑐𝑢𝑟𝑟𝑒𝑛𝑡 𝑠𝑕𝑎𝑟𝑒 𝑝𝑟𝑖𝑐𝑒
    𝑐𝑕𝑎𝑛𝑔𝑒𝑠 𝑖𝑛 𝑡𝑕𝑒 𝑠𝑖𝑧𝑒 𝑜𝑓 𝑚𝑎𝑟𝑘𝑒𝑡 𝑏𝑒𝑡𝑤𝑒𝑒𝑛 𝑦𝑒𝑎𝑟 2−1
    26. 𝑀𝑎𝑟𝑘𝑒𝑡 𝐺𝑟𝑜𝑤𝑡𝑕 % = × 100
    𝑠𝑖𝑧𝑒 𝑜𝑓 𝑡𝑕𝑒 𝑚𝑎𝑟𝑘𝑒𝑡 𝑖𝑛 𝑦𝑒𝑎𝑟 2−1
    𝑆𝑎𝑙𝑒𝑠 𝑜𝑓 𝑜𝑛𝑒 𝑏𝑢𝑠𝑖𝑛𝑒𝑠𝑠
    27. 𝑀𝑎𝑟𝑘𝑒𝑡 𝑆𝑕𝑎𝑟𝑒 % = × 100
    𝑡𝑜𝑡𝑎𝑙 𝑠𝑎𝑙𝑒𝑠 𝑖𝑛 𝑚𝑎𝑟𝑘𝑒𝑡
    𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑐𝑕𝑎𝑛𝑔𝑒 𝑖𝑛 𝑡𝑕𝑒 𝑞𝑢𝑎𝑛𝑡𝑖𝑡𝑦 𝑑𝑒𝑚𝑎𝑛𝑑𝑒𝑑
    28. 𝑃𝑟𝑖𝑐𝑒 𝑒𝑙𝑎𝑠𝑡𝑖𝑐𝑖𝑡𝑦 𝑜𝑓 𝑑𝑒𝑚𝑎𝑛𝑑 = 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑐𝑕𝑎𝑛𝑔𝑒 𝑖𝑛 𝑝𝑟𝑖𝑐𝑒
    29. 𝐴𝑑𝑑𝑒𝑑 𝑣𝑎𝑙𝑢𝑒 = 𝑠𝑎𝑙𝑒𝑠 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑟𝑎𝑤 𝑚𝑎𝑡𝑒𝑟𝑖𝑎𝑙 𝑝𝑢𝑟𝑐𝑕𝑎𝑠𝑒𝑑
    𝑡𝑜𝑡𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡
    30. 𝐿𝑎𝑏𝑜𝑢𝑟 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑣𝑖𝑡𝑦 = 𝑡𝑜𝑡𝑎𝑙 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒𝑠
    𝑡𝑜𝑡𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑝𝑟𝑜𝑑𝑢𝑐𝑡𝑖𝑜𝑛
    31. 𝑈𝑛𝑖𝑡 𝑐𝑜𝑠𝑡 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 𝑐𝑜𝑠𝑡 = 𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑢𝑛𝑖𝑡𝑠 𝑜𝑓 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑟𝑜𝑑𝑢𝑐𝑒𝑑
    𝑎𝑐𝑡𝑢𝑎𝑙 𝑜𝑢𝑡𝑝𝑢𝑡 𝑖𝑛 𝑎 𝑔𝑖𝑣𝑒𝑛 𝑡𝑖𝑚𝑖𝑒 𝑝𝑒𝑟𝑖𝑜𝑑
    32. 𝐶𝑎𝑝𝑎𝑐𝑖𝑡𝑦 𝑢𝑡𝑖𝑙𝑖𝑧𝑎𝑡𝑖𝑜𝑛 = × 100
    𝑚𝑎𝑥𝑖𝑚𝑢𝑚 𝑝𝑜𝑠𝑠𝑖𝑏𝑙𝑒 𝑜𝑢𝑡 𝑝𝑢𝑡
    33. 𝐺𝑟𝑜𝑠𝑠 𝑝𝑟𝑜𝑓𝑖𝑡 = 𝑆𝑎𝑙𝑒𝑠 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠
    34. 𝑂𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑝𝑟𝑜𝑓𝑖𝑡 = 𝑆𝑎𝑙𝑒𝑠 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠 − 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠
    35. 𝑃𝑟𝑜𝑓𝑖𝑡 𝑓𝑜𝑟 𝑡𝑕𝑒 𝑦𝑒𝑎𝑟 = 𝑠𝑎𝑙𝑒𝑠 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 − 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠 − 𝑜𝑝𝑒𝑟𝑎𝑡𝑖𝑛𝑔 𝑒𝑥𝑝𝑒𝑛𝑠𝑒𝑠 −
    𝑡𝑎𝑥𝑒𝑠 𝑎𝑛𝑑 𝑖𝑛𝑡𝑒𝑟𝑒𝑠𝑡
    𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑡𝑎𝑓𝑓 𝑙𝑒𝑎𝑣𝑖𝑛𝑔 𝑒𝑣𝑒𝑟𝑦 𝑦𝑒𝑎𝑟
    36. 𝐿𝑎𝑏𝑜𝑢𝑟 𝑡𝑢𝑟𝑛𝑜𝑣𝑒𝑟 % = 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 × 100
    𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑡𝑎𝑓𝑓 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡𝑕𝑒 𝑦𝑒𝑎𝑟
    𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑡𝑎𝑓𝑓 𝑙𝑒𝑎𝑣𝑖𝑛𝑔 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡𝑕𝑒 𝑦𝑒𝑎𝑟
    37. 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑟𝑒𝑡𝑒𝑛𝑠𝑖𝑜𝑛 𝑟𝑎𝑡𝑒 % = 𝑎𝑣𝑒𝑟𝑎𝑔𝑒 × 100
    𝑛𝑢𝑚𝑏𝑒𝑟 𝑜𝑓 𝑠𝑡𝑎𝑓𝑓 𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑑 𝑑𝑢𝑟𝑖𝑛𝑔 𝑡𝑕𝑒 𝑦𝑒𝑎𝑟
    𝑒𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑐𝑜𝑠𝑡
    38. 𝐸𝑚𝑝𝑙𝑜𝑦𝑒𝑒 𝑐𝑜𝑠𝑡 𝑎𝑠 𝑝𝑒𝑟𝑐𝑒𝑛𝑡𝑎𝑔𝑒 𝑜𝑓 𝑠𝑎𝑙𝑒𝑠 𝑟𝑒𝑣𝑒𝑛𝑢𝑒 = × 100
    𝑠𝑎𝑙𝑒𝑠 𝑟𝑒𝑣𝑒𝑛𝑢𝑒
    𝑇𝑜𝑡𝑎𝑙 𝑙𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡
    39. 𝐿𝑎𝑏𝑜𝑢𝑟 𝑐𝑜𝑠𝑡 𝑝𝑒𝑟 𝑢𝑛𝑖𝑡 = 𝑢𝑛𝑖𝑡𝑠 𝑜𝑓 𝑜𝑢𝑡𝑝𝑢𝑡
    𝑛𝑒𝑡 𝑟𝑒𝑡𝑢𝑟𝑛 𝑓𝑟𝑜𝑚 𝑡𝑕𝑒 𝑝𝑟𝑜𝑗𝑒𝑐𝑡
    40. 𝐴𝑣𝑒𝑟𝑎𝑔𝑒 𝑟𝑎𝑡𝑒 𝑜𝑓 𝑟𝑒𝑡𝑢𝑟𝑛 = × 100
    𝑖𝑛𝑖𝑡𝑖𝑎𝑙 𝑐𝑜𝑠𝑡 𝑜𝑓 𝑡𝑕𝑒 𝑝𝑟𝑜𝑗𝑒𝑐𝑡

    Dividend yield refers to a stock's annual dividend payments to shareholders, expressed as a percentage
    of the stock's current price. For example, Microsoft pays an annual dividend of $1.44, and the stock
    trades for $53.00 as of this writing.

    The Dividend Coverage Ratio, also known as dividend cover, is a financial metric that measures the
    number of times that a company can pay dividends to its shareholders. The dividend coverage ratio is
    the ratio of the company's net income.

    The dividend coverage ratio measures the number of times that a company could pay dividends to
    its shareholders. The concept is used by investors to estimate the risk of not receiving dividends.
    Thus, if a company has a high proportion of net income to its total annual amount of dividend
    payments, there is a low risk that the business will not be able to continue making dividend
    payments of the same amount. Conversely, if the ratio is less than one, the business may be
    borrowing money in order to make dividend payments, which is not sustainable..

    The Price Earnings Ratio (P/E Ratio) is therelationship between a company's stock price and
    earnings per share (EPS) A higher EPS ratio indicates a company's ability to generate profits for common
    shareholders.. It is a popular ratio that gives investors a better sense of the value. ... of the company.

    The price-to-earnings ratio (P/E ratio) is the ratio for valuing a company that measures its current share
    price relative to its per-share earnings (EPS). The price-to-earnings ratio is also sometimes known as
    the price multiple or the earnings multiple.

    P/E ratios are used by investors and analysts to determine the relative value of a company's shares in an
    apples-to-apples comparison. It can also be used to compare a company against its own historical record
    or to compare aggregate markets against one another or over time.

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