Joseph’s Stationary Ltd. shows the following financial information: 2021 2022 Earnings per share $0.60 $0.80 Dividend per share $0.10 $0.10 Market Value per share $7.48 $11.00 Net Asset Value $5.50 $6.00 Calculate the following ratios: Dividend cover Earnings yield Dividend yield Price / Earnings ratio Market / Book value
Financial Ratios
A Ratio refers to a figure calculated as a reference to the relationship of two or more numbers and can be expressed as a fraction, proportion, percentage, or the number of times. When the number is determined by taking two accounting numbers derived from the financial statements, it is termed as the accounting ratio.
Return on Equity
The Return on Equity (RoE) is a measure of the profitability of a business concerning the funds by its stockholders/shareholders. ROE is a metric used generally to determine how well the company utilizes its funds provided by the equity shareholders.
Joseph’s Stationary Ltd. shows the following financial information:
|
|
2021 |
2022 |
|
Earnings per share |
$0.60 |
$0.80 |
|
Dividend per share |
$0.10 |
$0.10 |
|
Market Value per share |
$7.48 |
$11.00 |
|
Net Asset Value |
$5.50 |
$6.00 |
Calculate the following ratios:
- Dividend cover
- Earnings yield
- Dividend yield
- Price / Earnings ratio
- Market / Book value
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