Ratios Made Simple A beginner's guide to the key financial ratios [Paperback]

Ratios provide an extremely effective method of understanding company accounts. At their most basic this usually involves taking one figure from the published accounts and dividing it by another - however, this seemingly simple process can reveal an enormous amount about both the nature and performance of a company.'Ratios Made Simple' looks at ratios from the perspective of an investor, providing a toolkit for investors to use to accurately analyse a company from its accounts. This book is divided into nine chapters, with each chapter looking at a different aspect of potential concern to an investor:1. Profitability Ratios2. Investment Ratios3. Dividend Cover4. Margins5. Gearing6. Solvency Ratios7. Efficiency Ratios8. Policy Ratios9. VolatilityFor each ratio, financial expert Robert Leach provides a detailed definition, explains how it works, describes its use. Investors are also given a simple explanation of how to calculate each ratio, what the ratio means and how the investor should apply the answers in making investment decisions.This book provides the investor with an essential guide to the use of these powerful analytical tools - tools that should form a vital part of an investor's decision-making process.About the AuthorIntroduction1. Profitability Ratios1.1. Earnings per Share (EPS)1.2. Price-to-Earnings Ratio (P/E)1.3. Enterprise Value/Earnings Before Interest, Taxes, Depreciation and Amortization Ratio (EV/EBITDA)1.4. Price-to-Sales Ratio (PSR)2. Investment Ratios2.1. Dividend Yield2.2. Total Return2.3. Return On Capital Employed (ROCE)2.4. Return On Equity (ROE)2.5. Premium To Asset Value (PAV)2.6. Internal Rate Of Return (IRR)2.7. Return On Assets (ROA)2.8. Dividend Payout Ratio3. Dividend Cover3.1. Dividend Cover4. Margins4.1. Gross Margin and Net Margin4.2. Overheads To Turnover5. Gearing5.1. Gearing Ratio5.2. Interest Cover6. Solvency Ratios6.1. Acid Test6.2. Current Ratio6.3. Cash Burn6.4. Defensive Interval6.5. Fixed Charges Cover7. Efficiency Ratils8