Chapter 12 - Interpreting Financial Statements Flashcards
Gross profit margin
Gross profit / revenue x 100
Operating profit margin
Operating profit / revenue x 100
Expenses ratio
Operating expenses / revenue x 100
Asset turnover
Revenue / capital employed
No. of times
What is capital employed?
Total equity + non current liabilities
Return on capital employed (ROCE)
Profit from operations / Capital employed x 100
Return on total assets
Profit from operations / total assets x 100
Return on equity
Profit after tax / total equity x 100
Earnings per share
Profit after tax / number of issued ordinary shares
Current ratio
Current assets / current liabilities
Quick ratio
Current assets - inventory / current liabilities
Inventory holding period and turnover
Inventories / cost of sales x 365
Receivables collection period
Trade receivables / revenue
Payables payment period
Trade payables / cost of sales
Working capital cycle
Inventory days + receivable days - payable days
