Accounting Ratios Flashcards
1
Q
Current ratio
A
Current assets / Current liabilities = x : 1
2
Q
Acid Test
A
(Current assets - Inventory) / Current liabilities = x : 1
3
Q
Gearing
A
Long term loans / (Ordinary Share Capital + reserves) x 100 = x%
4
Q
Earnings Per Share
A
profit after tax for ordinary shareholders / number of ordinary shares = x pence
5
Q
Price Earnings
A
Share Price / Earnings Per Share = x times
6
Q
Dividend per share
A
Dividend payable To Ordinary shareholder / Number Of Shares = x pence per share
7
Q
Return Of Capital Employed
A
Operating Profit before interest & tax / (total assets - current liabilities) x 100 = x%
8
Q
Gross Profit Margin
A
Gross Profit / Sales x 100 = x%
