Equations Flashcards
1
Q
Return on capital employed (ROCE)
A
profit before tax and interest/ long term capital employed (X100)
2
Q
gross profit margin
A
gross profit/turnover X100
3
Q
net profit margin
A
net profit/turnover X100
4
Q
return on equity
A
net profit/equity X100
5
Q
asset turnover
A
turnover/net assets
6
Q
stock turnover
A
cost of sales/stock
7
Q
debtor collection period
A
debtors/turnover X365
8
Q
creditor payment
A
creditors/cost of sales X365
9
Q
current ratio
A
current assets/ current liabilities
10
Q
acid test ratio
A
current assets-stock/current liabilities
11
Q
gearing ratio
A
fixed cost capital/long term capital X100
12
Q
fixed cost capital
A
loan
13
Q
long term capital
A
loan+profit+ (shares)
14
Q
interest cover
A
profit before tax and interest/interest
15
Q
earnings per share
A
profit after tax/number of ordinary shares (how much profit each share generates)
