Key Calcs Flashcards
Gross profit percentage
Gross profit / revenue x 100
Operating profit percentage
Profit from operations / revenue x 100
Expense / revenue percentage
Specified expense / revenue x 100
Current ratio
Current assets / current liabilities
Quick ratio
(Current assets - inventories) / current liabilities
Receivables collection period (days)
receivables / revenue x 365
Inventory holding period (days)
inventories / cost of sales x 365 (days)
Payable Period (days)
payables / cost of sales x 365 (days)
Working capital cycle
inventory days + receivable days - payable days
Gearing ratio
total debt / total debt + total equity x 100
Total debt is all non-current liabilities and includes overdrafts
Interest Cover
profit from operations / finance costs
ROCE (return on capital employed)
profit from operations / capital employed x 100%
Capital employed
working capital + non-current assets.
This can also be calculated as total equity + non-current liabilities.
RONA (return on net assets)
Net income or profit from operations / net assets x
100%
Asset Turnover (net assets)
revenue / total assets - current liabilities = X times
