Ratio Formulas Flashcards
1
Q
Current ratio
A
Current assets/ Current liabilities
X:1
2
Q
Receivables days
A
(Receivables/Sales revenue) x 365
=X days
3
Q
Payables days
A
(Payables/cost of sales) x 365
=X days
4
Q
Inventory turnover
A
Cost of sales/average inventories held

5
Q
Gross profit margin
A
(Gross profit / Revenue) x 100 =%
6
Q
Operating profit margin
A
(Operating profit / revenue) x 100 = %
7
Q
Profit for year margin
A
(Profit for the year/revenue) x 100 = %
8
Q
Return on capital employed
ROCE
A
((Operating profit) / (Total equity + Non-current Liabilities)) x 100 = %
9
Q
Gearing
A
((Non-Current Liabilities)/(Total equity + Non-current Liabilities)) x 100 = %
10
Q
Share capital
A
(The price a business sets)x(number of shares issued)
11
Q
Market capitalisation
A
(Current value of share price)x(number of shares issued)
