business analysis Flashcards
1
Q
net profit margin equation
A
profit on ordinary activities before taxation / revenue * 100
2
Q
gearing equation
A
total long term liabilities / total equity and long term liabilities * 100
3
Q
fixed charge cover equation
A
operating profit before depreciation / interest payable and similar fixed charges
4
Q
gross profit margin equation
A
gross profit (income statement) / revenue * 100
5
Q
return on capital employed roce equation
A
profit on ordinary activities before taxation add back interest payable and similar charges / capital employed (total equity and liabilities) * 100
6
Q
quick ratio equation
A
current assets minus inventories / current liabilities
7
Q
current ratio equation
A
current assets / current liabilities
