Formulas Flashcards
Total assets
Current assets + non current assets
Net assets
(Non currents assets + current assets) - (non current liabilities + current liabilities)
Working capital
Current assets - current liabilities
Gross profit
Sales revenue - direct costs
Profitability ratios
Gross profit margin = gross profit/ sales X 100
Operating profit margin = operating profit / sales X 100
Profit for the year margin = profit for the year / sales X 100
Return on capital employed (ROCE) = operating profit X 100/ total equity + non current liabilities
Liquidity ratios
Current ratio= current assets/ current liabilities
Gearing
Non current liabilities X100/ total equity + non current liabilities
Efficiency ratios
Inventory turnover = costs of goods sold / average inventories held
Receivable days = receivables X 365/ revenue
Payable days = payables X 365/ costs of sales
