ratio analysis Flashcards
1
Q
gross profit margin
A
(gross profit / sales revenue) x 100
2
Q
operating profit margin
A
(operating profit / sales revenue) x 100
3
Q
net profit margin
A
(net profit / sales revenue) x 100
4
Q
ROCE
A
operating profit / capital employed) x 100
5
Q
working capital
A
current assets - current liabilities
6
Q
current ratio
A
current assets / current liabilities
7
Q
acid test ratio
A
(current assets - inventory) / current liabilities
8
Q
gearing ratio
A
(long term liabilities / capital employed) x 100
