Accounting equations Flashcards
accounting rate of return (ARR)
average yearly profit % initial investment = percent
net present value
take into the account of changing value of money
current ratio
current assets % current liabilities
acid test ratio
current assets (no stock) % current liabilities
debtor collection period
debtors % turnover x 365
gross profit margin
gross profit % revenue x 100
net profit margin
net profit % revenue x 100
operating profit margin
operating profit % sales x 100
return of capital employed (ROCE)
operating profit % capital employed x 100
gearing ratio
longterm liabiliters % capital employed x 100
interest cover
profit before tax and interest % interest
non current asset turnover
revenue % non current assets (given as 0.1)
stock turnover
cost of sales % average stock held/ 365 % stock turnover
dividend per share
total dividends paid % number of shares
dividend yield
dividend per share % share price
