AC120 lecture 34

1
AC120 lecture 34

• Ratio analysis

2
Gearing

• Gearing
• Working capital
• Debtors days/creditors days
• Stock turnover ratio
• Investment and gearing risk

3
Investment return and risk

• Earnings per ordinary share - earnings
  attributable to each share in issue
• Price/earnings ratio - number of years to recoup
  price paid for a share. P/E is affected by
  perceived risk and expected future earnings