Fiance Equations Flashcards
1
Q
Current ratio
A
Current assets/ current liabilities
2
Q
Acid test ratio
A
Current assets-stock/current liabilities
3
Q
Debtor days
A
Trade debtors/revenue(sales) *365
4
Q
Creditor days
A
Trade payables/ cost of sales *365
5
Q
Gearing ratio
A
Long term liabilities/capital *100
6
Q
Interest cover
A
Profit before tax and interest/interest
7
Q
Profitability margin %
A
Gross profit/sales revenue* 100
8
Q
Net profit margin
A
Net profit (before tax)/sales * 100
9
Q
Operating profit
A
Operating profit/sales*100
10
Q
Arr=
A
Profit/years that/investment that *100
11
Q
Roce
A
Operating profit/ retained earnings +share capital +long term borrowing
