Accounting ratios Q5 Flashcards
1
Q
PROFITABILITY return on capital employed (ROCE)
A
Net profit +interest. 100
______________X____
Capital employed. 1
2
Q
PROFITABILITY
Gross profit margin
A
Gross profit 100
__________X____.
Sales 1
3
Q
PROFITABILITY
Net profit margin
A
Net profit 100
__________X______
Sales 1
4
Q
PROFITABILITY
Return on shareholders funds
(ROSF)
A
Net. P (-) pref dividend. 100
____________________X______
Ord.share capital(+) p+l balance 1
5
Q
GEARING
gearing ratio
A
Debentures (+) pref shares. 100
______________________X______
Capital employed 1