Table A1

Applied ratios

The research capture the aspects of firms using the following ratios
1. Market value-Size2. Investment
SALESHASales per shareDIVSHDividend per share
NAVSHNet Asset Value per shareDIVYIDividend yield (div per share/share price)
SALETASTurnover/Total AssetsDIVCOVDividend cover (Net profit/dividend)
RESTASReserves/Total AssetsPEP/E
RESSFURes/Shareholders FundsHOLTAHoldings/Total assets
LNMVNatural Algorithm of MV
3. Growth4. Profitability
MVBVMarket to Book ValuePLOWBPlowback Ratio (retained profit/operating profit)
EPSGEarnings per Share GrowthOPMOperating Profit Margin (operating profit/sales)
PEGPE Ratio/Annual EPS growthNPMNet Profit Margin (net profit/sales)
DIVSHGDividend per Share GrowthROSC(Profit after tax/Equity + Reserves)
EPSEPS
ROCE(PBIT/Equity + Reserves + Lt loans)
5. Liquidity6. Leverage
CURCurrent RatioDEBTDebtor Turnover (sales/debtors)
2CASHCash RatioETLEquity/Total Liabilities
QUIQuick RatioTLSFUTotal Liabilities/Shareholders Funds
CFSHOperating Cash Flow per share [(Operating profit + depreciation)/No of shares]CGEARTL/Capital Employed-Intangibles + short-term Liabilities
CFMCash Flow Margin [(Earnings+Depreciation)/Sales]CLSFUCurrent Liabilities/Shareholders Funds
WCRWorking Capital Ratio (Sales/Working Capital)INTCOVOperating Profit/Interest Charge
STOCKTStock turnover (cost of sales/stock)IGEARInterest Charge/Operating Profit
DEBTEDebt/Equity
DSFUDebt/Shareholders Funds

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