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    blablah123's Avatar
    blablah123 Posts: 4, Reputation: 2
    New Member
    		  
    #1

    Nov 7, 2006, 05:31 PM
    How do I analyze financials of a UK-based company (traded in US)
    I am doing an analysis for work on a UK-based company and I need to compute the following:

    1) Debt to Equity Ratio
    2) Asset Turnover Ratio
    3) Dividend Payout Ratio
    4) Net Profit Margin

    Can anyone make it easy for me so I know what to plug-in to a formula? Does it matter that the company is UK-based as I don't have a 10-K to look at (have 20-F)?
    CaptainForest's Avatar
    CaptainForest Posts: 3,645, Reputation: 393
    Ultra Member
    		  
    #2

    Nov 10, 2006, 10:33 PM
    1) Debt to Equity Ratio = Total Liabilities / Shareholder's Equity

    2) Asset Turnover Ratio = Revenue / Average Total Assets for the period

    3) Dividend Payout Ratio = Yearly Dividend Per Share / Earnings Per Share OR Dividend Payout Ratio = Dividends / Net Income

    4) Net Profit Margin = Net Profit / Net Revenues

    For a complete explanation on these and other ratios, see http://www.investopedia.com/
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