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3.7 STRATEGIC POSITION > Ratio Calculations > Flashcards

Ratio Calculations Flashcards

1
Q

What’s 3 examples of current assets?

A

Inventory
Receivable
Cash

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2
Q

What’s 3 examples of current liabilities?

A

Overdraft
Payables
Wages/Expenses

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3
Q

What are 2 examples of non-current assets?

A

Machinery
Property

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4
Q

What are 2 non-current liabilities?

A

Loans
Mortgages

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5
Q

What’s shareholder equity?

A

What you sell in shares

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6
Q

How is net assets calculated?

A

Total assets minus total liabilities

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7
Q

How do you calculate return on capital employed?

A

Operating Profit or net profit divided by capital employed X100

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8
Q

How do you calculate capital employed?

A

Total assets minus current liabilities

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9
Q

How do you calculate gross profit margin?

A

Gross Profit divided by revenue X100

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10
Q

How do you calculate operating profit margin?

A

Operating Profit divided by revenue X100

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11
Q

How do you calculate profit for year margin?

A

Profit for the year divided by revenue X100

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12
Q

How do you calculate current ratio?

A

Current assets divided by current liabilities

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13
Q

How do you calculate gearing?

A

Non-current liabilities divided by capital employed X100

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14
Q

How do you calculate payable days?

A

Payables divided by cost of sales X365

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15
Q

How do you calculate receivable days?

A

Receiveables divided by revenue X365

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16
Q

How do you calculate inventory turnover?

A

Cost of sales divided by average inventory held

17
Q

How do you calculate operating profit?

A

Gross profit minus expenses

18
Q

How do you calculate gross profit?

A

Revenue - cost of sales

3.7 STRATEGIC POSITION (9 decks)

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