Formulas- Financial Ratios Flashcards
1
Q
Capital Employed
A
Total Equity + Non-current Liabilities
2
Q
Return on Capital Employed
ROCE (%)
A
Operating profit/ Capital Employed x100
3
Q
Current Ratio (Liquidity)
A
Current Assets/ Current Liabilities
4
Q
Gearing (%)
A
Non-current Liabilities/ Capital Employed x 100
5
Q
Payables (Creditors) Days
A
Payables/ Cost of Sales x 365
6
Q
Receivables (Debtors) Days
A
Receivables/ Sales Revenue x 365
7
Q
Inventory Turnover
A
Cost of Goods Sold/ Average Inventories held