BUSS3 Ratio analysis help?

Hi, I know ratio analysis quite well, it just the "average figure" I'm having trouble with on some of them. This is what I have so far, are these figures right? And what are the ones I have missed out? I know each figure depends on the business etc but what's the average figure for each ratio? Thank you

Current Ratio - 2/1.5:1

Acid Test - 1/0.75:1

ROCE - The higher the better

Gearing - 25% (low), 50% (high)

Asset Turnover - 2

Inventories Turnover -

Receivable Days - 28 Days

Payable Days - 30 Days (Aims to have a payable days figure that exceeds receivable days figure)

Dividends Per Share -

Dividend Yeild -

For inventories turnover it depends on the business. A company that sells fresh fruit and veg may have a high stock turnover whereas a clothes retailer may have a low stock turnover.

Oh okay thanks, what about Dividend per share? I've heard it's the higher the better but I'm not sure if that's true as the higher it is, the worse off it is for the business as they have to less retained profits right? But it's more attractive for investors to purchase share so I'm not sure if it's the higher to the lower the better, or a specific figure?

With dividend per share it'll probably depend on the current financial position of a company. If the company is performing well and is profitable, a high dividend per share would be appropriate whereas if there is a low dividend per share then you could question if it would be a good return on investment as the company is reluctant to pay a dividend. However, if the company was performing badly a low dividend per share would be more relevant whereas a high dividend per share could be the wrong strategy as they could use the earnings for other areas of the company

Ohhh okay I get it now thank you!

Remember for ROCE, 20%-30% is a good amount. Any lower than 20 and the Business may need to increase its profits.<br />
<br />
<font size="1"><a href="http://www.thestudentroom.co.uk/app" target="_blank">Posted from TSR Mobile</a></font>