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Saudi Stock Market Analysis Definitions
Also See
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Liquidity Ratios |
Profitability |
Leverage Ratios |
Efficiency |
Other |
| Current Ratio | Return
on Equity Return on Asset Net Profit Margin |
Debt
to equity Ratio Equity to Asset Ratio Debt to Asset Ratio Loans to Deposit Ratio |
Total Asset Turnover | Growth
Rate Payout Ratio Retention Ratio |
Avg. Volume = (Sum of Volume / #of Volume Entries)
Price to Earning Ratio = (Last Price / Earnings Per Share)
Price to BookValue = (Last Price / Book Value)Market Capitalization = (Last Price * #of Shares Outstanding)
Dividend Yield = (Dividend / Last Price)
Liquidity Ratios |
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Current
Ratio Indicates the extent to which the claims of short-term creditors are covered by assets that are expected to be converted to cash in a period roughly corresponding to the maturity of the liabilities. While there are many exceptions, the general rule of thumb is to have current assets twice as large as current liabilities, i.e., a ratio of greater than 2:1; a ratio of 1.0 is essential. If a firm has a small inventory and easily collectable receivables, the firm can operate at a lower ratio than those in the opposite condition. Expressed as a decimal. = (Current Assets / Current Liabilities) |
Profitability |
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Return
on Equity A measure of the rate of return on stockholders’ total investment in the firm. Expressed as a percentage. = (Net Profit after Taxes / Total Equity) |
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Return
on Asset Sometimes referred to as Return on Investment (ROI). A measure of the rate of return on total investment in the firm. As a measure of management’s efficiency, it shows the return on all the assets under its control regardless of the source of financing. Expressed as a percentage. = (Net Profit after Taxes / Total Assets) |
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Net
Profit Margin Sometimes referred to as return on sales. Shows after tax profit per dollar of sales. Sub-par profit margins usually indicate that the firm’s sales prices are relatively low, or that its cost are relatively high, or a combination of both. Expressed as a percentage. = (Net profit after Taxes / Net Sales) |
Leverage Ratios |
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Debt
to equity Ratio Provides a measure of the funds provided by creditors versus the funds provided by owners. Expressed as a decimal. = (Total Debt / Equity) |
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Equity to Asset Ratio |
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Debt
to Asset Ratio Measures the extent to which borrowed funds have been used to finance the firm’s operations. Expressed as a percentage. = (Total Debt / Total Assets) |
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Loans to Deposit Ratio |
Efficiency |
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Total Asset Turnover |
Other |
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Growth Rate |
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Payout Ratio |
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Retention Ratio |
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Also See
Stock
Exchange Glossary
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