MA Ratios Flashcards
Idle time ratio
Idle hours / total hours x 100
Labour turnover rate
Replacements / Average number of employees x 100
Labour efficiency ratio
Expected or standard Hours to make output / actuales hours taken x 100
Labour capacity ratio
Actual hours worked / Budgeted hours x 100
Labour production volume ratio (Activity ratio)
Expected or standard hours to make output / Budgeted hours x 100
Return on capital employed
Profit before tax and interest / Turn the long-term capital (Capital and reserves and long-term liabilities)
Net profit margin
Profit before tax and interest / Revenue
Asset turnover
Revenue / Long-term capital
Return on capital employed
Return on capital employed = asset turnover x net profit margin
Gross profit margin
Gross profit / revenue
Current ratio
Current assets / current liabilities
Quick ratio (acid test)
Current assets - inventory / current liabilities
Inventory days
Inventory / cost of sales x 365
Average collection period ( receivable days)
Trade receivables / revenue x 365
Average payment period ( payable days)
Trade payables / purchases x 365
