RATIO’s:
Investment ratios
Earnings per share (EPS)* PAT1-non controlling interest-preference div Measures profit after tax per share.
Number of ordinary shares
Dividend per share (DPS)* Ordinary dividends Measures dividends earned per share.
Number of ordinary shares
Price-earnings ratio (P/E)* Price per share Measures how much investors are willing to pay in relation to earnings per
Earnings per share share.
Dividend pay-out ratio Ordinary dividends Measures how much dividends are paid out in relation to profits. The difference
Attributable earnings is what is reinvested into the company
Ordinary dividend coverage* Attributable earnings Measures the extent to which dividends can be paid from earnings. Where this
Ordinary dividends ratio is less than 1, then earnings are not sufficient to pay dividends. The entity
may have to access retained earnings if it wishes to pay dividends
Market-to-book value Market capitalization2 of ordinary shares Measures the extent to which the investors are willing to pay in relation to the
Book value of ordinary shares original capital invested and retained earnings of the company
1Profit after tax
2Value of the shares in the open market.
Investment ratios
Earnings per share (EPS)* PAT1-non controlling interest-preference div Measures profit after tax per share.
Number of ordinary shares
Dividend per share (DPS)* Ordinary dividends Measures dividends earned per share.
Number of ordinary shares
Price-earnings ratio (P/E)* Price per share Measures how much investors are willing to pay in relation to earnings per
Earnings per share share.
Dividend pay-out ratio Ordinary dividends Measures how much dividends are paid out in relation to profits. The difference
Attributable earnings is what is reinvested into the company
Ordinary dividend coverage* Attributable earnings Measures the extent to which dividends can be paid from earnings. Where this
Ordinary dividends ratio is less than 1, then earnings are not sufficient to pay dividends. The entity
may have to access retained earnings if it wishes to pay dividends
Market-to-book value Market capitalization2 of ordinary shares Measures the extent to which the investors are willing to pay in relation to the
Book value of ordinary shares original capital invested and retained earnings of the company
1Profit after tax
2Value of the shares in the open market.
