How to use this Handbook

While reading this book, please remember that various companies have different financial year-ends i.e. March, June, September and December.  Therefore, when making comparisons of the different stocks, please take cognizance of this fact.


The ratios were derived from the Balance Sheets, Income and Expenditure Statements. However some of the definitions differ from company to company based on the items included or excluded from the calculation. For example, Earnings per Share is the ratio between profit attributable to shareholders and shares in issue. Profit attributable to shareholders in some cases includes extraordinary items and general provisions while in others it doesn’t.  Some companies have used the weighted average number of shares issued during the year as opposed to shares in issues at one point in time. Taxation item can either be a charge (which is the norm) or a credit. The sign before the taxation value identifies this. Also note that the symbol (-)   suggests that the information is not available or undefined while (0)   Suggests that nothing was allocated.



Financial Ratios Used in this book

Price to Book Value (Kshs.) =

Market Price per Share

Net Asset Value per Share

Current Ratio =

Total Current Assets

Total Current Liabilities

Earnings per Share=

Earnings Attributable to Shareholders

Number of outstanding Shares

Price-to-Earnings Ratio =

Market Price Per Share

Earnings per Share


 Dividend Yield=

Dividend per Share

Market Price per Share

Pay Out- Ratio =

Dividend per Share

Earnings per Share

Dividend per Share=

Dividend (Kshs) paid

Total Number of Shares issued

Market Price to Book Value (Kshs.)=

Market Capitalization

Net Assets Value

Price-to-Earnings Ratio(P/E)=

Market Price Per Share

 Earnings per share

Net Asset Value Per Share (Kshs.)=

Total Net Assets

Number of outstanding Shares


Return on Equity =

Net income (profit after tax).


Nairobi Securities Exchange 2016-2017 Annual Handbook /CEO's message