financial ratios - component 2 formulas Flashcards

1
Q

shareholders funds

A

share capital + reserves

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2
Q

total equity

A

share capital+ reserves

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3
Q

capital employed

A

shareholders funds + long term liabilities

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4
Q

working capital

A

current assets - current liabilities

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5
Q

ROCE defintion

A

how effectively the capital invested into a business is used to create profits

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6
Q

ROCE formula

A

net profit before tax / shareholders funds(equity) + long term liabilities
X100

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