Formulas- Financial Ratios Flashcards

1
Q

Capital Employed

A

Total Equity + Non-current Liabilities

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2
Q

Return on Capital Employed

ROCE (%)

A

Operating profit/ Capital Employed x100

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3
Q

Current Ratio (Liquidity)

A

Current Assets/ Current Liabilities

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4
Q

Gearing (%)

A

Non-current Liabilities/ Capital Employed x 100

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5
Q

Payables (Creditors) Days

A

Payables/ Cost of Sales x 365

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6
Q

Receivables (Debtors) Days

A

Receivables/ Sales Revenue x 365

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7
Q

Inventory Turnover

A

Cost of Goods Sold/ Average Inventories held

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