financial ratios Flashcards
1
Q
gross profit margin
A
gross profit/ sales revenue x 100
2
Q
mark up
A
gross profit/ cost of sales x 100
3
Q
net profit margin
A
operating profit/ sales revenue x 100
4
Q
return on capital
A
operating profit/ capital employed x 100
5
Q
capital employed
A
total equity + non current liabilities
6
Q
current ratio
A
current assets/ current liabilities
7
Q
acid test ratio
A
current assets- inventory/ current liabilitiesq
8
Q
gearing
A
fixed cost finance/ capital employed x 100
9
Q
inventory turnover in times
A
cost of sales/ average inventory
10
Q
inventory turnover in days
A
average inventory / cost of sales x 365
11
Q
trade receivables days
A
trade receivables / credit sales x 365
12
Q
trade payables days
A
trace payables / credit purchases x 365
