Financial Ratios Flashcards
1
Q
Profitability ratios
A
Operating/net profit
ROCE (%) = —————————— x 100
Total equity+ NCL
2
Q
Liquidity ratios
A
current assets
Current ratio = ————————
current liabilities
3
Q
Gearing
A
NCL
= —————————
Total equity + NCL
4
Q
Efficiency ratios
A
Costs of goods sold
Inventory turnover ratio =——————
average inventory held
5
Q
Receivable days
A
Receivables
—————— x 365
Revenue
6
Q
Payable days
A
Payables
—————————— x 365
Costs of goods sold
