Efficiency Calculations Flashcards
1
Q
What is the formula for the non current asses turnover
A
Revenue / non current assets
2
Q
How do you work out stock turnover (2 steps)
A
- Cost of sales / average stock held
2. 365 / ANS
3
Q
What are the names of the four efficiency calculations you need to know
A
- Net current asset turnover
- Stock turnover
- Intrest cover
- Gearing
4
Q
What’s the calculation for intrest cover
A
Total profit before tax and intrest / intrest
5
Q
What is the gearing ratio
A
- Gearing % = loans / (loans + shares + profits)
2. ANS x 100
