Formulas 2 Flashcards
1
Q
Net assets
A
Non current assets + net current assets - non current liabilities
2
Q
Return on capital employed
A
(Net profit / capital employed) x 100
3
Q
Current ratio
A
Current assets / current liabilities
4
Q
Liquid capital ratio
A
( current assets - inventory) / current liabilities
5
Q
Trade receivable days
A
(Trade receivables/ credit sales) x 365
6
Q
Trade payable days
A
(Trade payables / credit purchases) x 365
7
Q
Inventory turnover
A
(Average inventory/ cost of sales) x 365
