Return Ratios

Question 1

Return on shareholders equity (ROSHE)

Answer 1

(Net profit after tax / Average shareholders equity) * 100

Average shareholders’ equity = (Shareholders’ equity at the beginning of the year + Shareholders’ equity at the end of the year) / 2

Question 2

Return on average capital employed (ROACE)

Answer 2

(Profit before tax and finance cost / average capital employed) * 100

Capital employed = shareholders equity + long term loans

Question 3

Net asset value per share (NAVPS)

Answer 3

(Shareholders equity / number of shares issued) * 100

Question 4

Dividends per share (DPS)

Answer 4

(Dividends on ordinary shares / number of shares issued) * 100

Dividends = interim + recommend

Question 5

Earnings per share (EPS)

Answer 5

(Net profit after tax / Number of shares issued) * 100