F7 - Ratio Liquidity & Stability Flashcards
1
Q
Current ratio
A
Current ratio = Current asset / current liability
2
Q
Acid test ratio
A
Acid test ratio = Current asset - Inventory / current liability
3
Q
Inventory days
A
Inventory days:
In days = closing or average inventory / COGS X 365 days
In times: = COGS/ closing or average inventory
4
Q
Payable days
A
Payable days = closing or average payable / CREDIT purchase
x 365 days
5
Q
Capital gearing
A
Capital gearing = long term debt / capital employed x 100%
6
Q
Interest cover
A
Interest cover = PBIT / Interest = No of times
7
Q
P/E ratio
A
P/E ratio = Price per share (lấy market price) / EPS
Lưu ý: PIBT là profit before interest and tax nên phải ADD BACK TAX và FINANCE COST
