Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

TC FINANCE > Module 9 - Ratio Analysis > Flashcards

Module 9 - Ratio Analysis Flashcards

You may prefer our related Brainscape-certified flashcards:
Series 65 flashcards Series 63 flashcards Series 66 flashcards Series 7 Top-off Exam flashcards SIE Exam flashcards CFA flashcards Series 79 Top-Off Exam flashcards
1
Q

Gross margin

A

Gross profit/turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

mark-up

A

Gross profit/ cost of sales

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Net profit margin

A

PBIT / turnover

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

ROCE

A

PBIT/capital employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

capital employed

A

Shareholders funds plus long term creditors = total assets less current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

asset turnover

A

turnover/capital employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

how else can ROCE be determined using asset turnover

A

ROCE = net profit margin x asset turnover

PBIT/ capital employed = PBIT/turnover x turnover/capital employed

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

current ratio

A

current assets / current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

quick ratio

A

current assets - stock / current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

debtor days

A

(trade debtors / credit sales) x 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

creditor days

A

(trade creditors / credit purchases) x 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Purchases

A

CoS - opening stock + closing stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

stock turnover

A

CoS/stock

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

stock days

A

stock / CoS x 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Working capital cycle

A

debtor days + stock days - creditor days

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

gearing

A
  1. debt capital / shareholder’s funds

2. debt capital / capital employed

17
Q

interest cover

A

PBIT / interest charges

TC FINANCE (15 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions