Accounting Ratio's Flashcards
Gross Profit Percentage
(gross profit / revenue) x 100
Expenses/Revenue Percentage
(specified expense / revenue) x 100
Operating Profit Percentage
(profit from operations / revenue) x 100
Return On Capital Employed (Primary Ratio)
profit from operations / (non-current liabilities + equity) x 100
Return On Shareholders’ Funds
profit after tax / equity x 100
Interest Cover
profit from operations / finance costs = x times
Gearing
non-current liabilities / (non-current liabilities + equity) x 100
Inventory Holding Period
inventory / COS x 365 days
Inventory Turnover Time
COS / inventory x 365 days
Trade Receivable Collection Period
trade receivables / revenue x 365 days
Trade Payable Collection Period
trade payables / COS x 365 days
Working Capital Cycle
inventory + receivables days - payables days
Asset Turnover Ratio (Non-Current Assets)
revenue / non-current assets = x times
Asset Turnover Ratio (Net Assets)
revenue / (total assets - current liabilities) = x times
Current Ratio (Working Capital Ratio)
current assets / current liabilities = x : 1
