Finance Ratios Flashcards
1
Q
Liquidity Ratio 1
A
Current Ratio = Current Assets/Current Liabilities
2
Q
Gearing Ratio 1
A
Debt to Equity Ratio = total debt/owners equity
3
Q
Profitability Ratio 1
A
Gross Profit Ratio = gross profit/sales
4
Q
Profitability Ratio 2
A
Net Profit Ratio = Net profit/sales
5
Q
Profitability Ratio 3
A
Return on owners equity Ratio = Net Profit (before tax)/owners equity
6
Q
Efficiency Ratio 1
A
Expense Ratio = expenses/sales
7
Q
Efficiency Ratio 2
A
Accounts receivable turnover ratio = annual credit sales/average accounts receivable
