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Ratio analysis > Formulas > Flashcards

Formulas Flashcards

1
Q

What is the formula for Gross Profit Margin?

A

Gross profit / Revenue x 100

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2
Q

What is the formula for Operating Profit Margin?

A

Operating profit / Revenue

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3
Q

What is the formula for Net Profit Margin?

A

Net profit / Revenue x 100

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4
Q

What is the formula for Return on Shareholders Funds?

A

Profit for the year / Equity x 100

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5
Q

What is the formula for Return on Capital Employed?

A

Operating profit / Equity + Long term debt

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6
Q

What is the formula for Inventory Days?

A

Inventory/ Cost of sales x 365

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7
Q

What is the formula for Receivables Days?

A

Receivables/ Sales x 365

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8
Q

What is the formula for Payables Days?

A

Payables/ Cost of Sales x 365

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9
Q

What is the formula for Operating Cash Cycle?

A

Inventory days + receivables days - payable days

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10
Q

What is the formula for Current Ratio?

A

Current Assets/Current Liabilities

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11
Q

What is the formula for Quick Ratio?

A

Current Assets less Inventory /Current Liabilities

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12
Q

What is the formula for Gearing (Debt to Equity)?

A

Debt / Total debt + Equity x 100

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13
Q

What is the formula for Gearing (Debt to Total Capital)?

A

Debt / (Debt + Equity)

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14
Q

What is the formula for Interest Cover?

A

Operating profit / Interest expense

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Ratio analysis (3 decks)

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