Ratio Analysis Flashcards
Gross Margin
Gross Profit / Revenue * 100
Markup
Gross Profit / Cost of sales * 100
Profit Margin
Profit of the year/Revenue*100
Return On Capital Employed (ROCE)
Net profit before interest/Capital Employed * 100
Capital Employed
Issued Shares + Reserves + Non-Current Liabilities
Current Ratio
Current Assets/Current Liabilities
Liquid (Acid Test) Ratio
Current Assets - Inventory / Current liabilities
Rate Of Inventory Turnover
Costs of good sold/ Average Inventory
Trade Receivable Turnover
Trade recievables/ Credit Sales* 365
Trade Payable Turnover
Trade Payable/ Credit Purchase * 365
Inventory
Inventory+Credit Purchases- Cost of goods sold
Trade receivables
Trade receivables + Sales - Receipts - Discounts
Trade Payables
Trade payables + Purchases - Reciepts - Discounts
Bank
Opening Bank+ Receipts - Payments