Ratio Analysis Flashcards
1
Q
How do you calculate gross profit margin ?
A
Gross profit
——————— x100
sales revenue
2
Q
How do you calculate operating profit margin ?
A
Operating profit
———————— x100
sales revenue
3
Q
How do you calculate return on capital employed ?
A
Operating profit
————————- x100
(Total equity + non
current liabilities )
4
Q
How do you calculate inventory (stock) turnover ?
A
average inventories held
5
Q
How do you calculate receivables (debtors) days ?
A
Receivables
——————– x100
sales rev
6
Q
How do you calculate payables (creditors) days ?
A
Payables
——————- x365
cost of sales
7
Q
How do you calculate the current ratio?
A
current liabilities
8
Q
How do you calculate the gearing ratio ?
A
Non- current liabilities
—————————————- x100
(Non current liabilities +
Total equity)
