financial ratios - component 2 formulas Flashcards
1
Q
shareholders funds
A
share capital + reserves
2
Q
total equity
A
share capital+ reserves
3
Q
capital employed
A
shareholders funds + long term liabilities
4
Q
working capital
A
current assets - current liabilities
5
Q
ROCE defintion
A
how effectively the capital invested into a business is used to create profits
6
Q
ROCE formula
A
net profit before tax / shareholders funds(equity) + long term liabilities
X100