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Accounts > Accounting Ratios > Flashcards

Accounting Ratios Flashcards

1
Q

Current Ratio

A

Current Assets/Current liabilities

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2
Q

Liquid Ratio

A

Quick Assets (Current assets- Inventories- Prepaid Expenses)/Current Liabilities

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3
Q

Debt to Equity Ratio

A

Debt/Equity

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4
Q

Total Asset-to-debt ratio

A

Total Assets/Debt

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5
Q

Proprietary Ratio

A

Shareholder Funds/Total Assets

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6
Q

Interest Coverage Ratio

A

Profit before Interest and Tax/Interest on long-term debt

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7
Q

Debt to Capital employed ratio

A

Debt/Capital Employed

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8
Q

Inventory Turnover ratio

A

Cost of Revenue from operation/Average inventory

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9
Q

Trade Receivables Turnover Ratio

A

Credit revenue from operations/Average Trade receivables

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10
Q

Trade Payable Turnover Ratio

A

Net credit purchase/Average trade Payables

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11
Q

Working Capital Turnover Ratio

A

Revenue from operations/Working Capital

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12
Q

Fixed assets turnover ratio

A

Revenue from operations/Fixed Assets

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13
Q

Net assets or Capital employed turnover ratio

A

Revenue from operations/Capital Employed

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14
Q

Gross Profit Ratio

A

Gross Profit/Revenue from operations*100

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15
Q

Operating Ratio

A

Operating cost/ RFO*100

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16
Q

Operating Profit ratio

A

Operating profit/RFO*100

17
Q

Net Profit Ratio

A

N.P after tax/RFO*100

18
Q

Return on Investment/ C.E Ratio

A

Profit before tax, int. & div/C.E*100

19
Q

Quick Assets

A

C.A- Inventories- Prepaid expense

20
Q

Shareholder funds (3)

A

Share Capital+reserve and surplus
OR.
NCA+CA-NCL-CL
OR.
NCA+WC-NCL

21
Q

Profit before interest and tax

A

Profit after…+Tax+Int.

22
Q

COGS(2)

A

Purchase+Direct exp+ Opening- Closing
OR.
RFO- GP

23
Q

Op. exp.

A

employees benefit expense+ dep and amortised expenses+ other non cash expense

24
Q

Op. Profit (2)

A

Net profit before tax+ Nonoperating expense- Non-operating income
OR.
Gross Profit+ Operating income- operating expense

Accounts (3 decks)

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