Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Accounting > Ratio Formulas > Flashcards

Ratio Formulas Flashcards

1
Q

Profitability ratios?

A

Return on capital employed (ROCE)
Gross profit margin
Operating profit margin
Net profit margin

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Return on capital employed (ROCE)

Formula

A

Profit before interest and tax (operating profit)

Divide

Share capital + reserves + non-current liabilities

X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Gross profit margin

A

Gross profit

Divide

Sales revenue

X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Operating profit margin

A

Operating profit

Divide

Sales revenue

X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Net profit margin

A

Net profit

Divide

Sales revenue

X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Current ratio

A

Current assets

Divide

Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Acid test ratio

A

Current assets - inventory

Divide

Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Asset turnover

A

Sales

Divide

Share capital + reserves + non-current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Inventory turnover (days)

A

Inventory

Divide

Cost of sales

X365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Inventory turnover (times)

A

Cost of inventory

Divide

Inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Receivable’s days

A

Trade receivables

Divide

Credit sales

X365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Payable’s days

A

Trade payables

Divide

Credit purchases (or cost of sales)

X365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Earnings per share (EPS)

A

Operating profit

Divide

Number of ordinary shares in issue

X100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Price/ earnings ratio (PE)

A

Market value per share

Divide

EPS (earnings per share)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Dividend cover

A

Profit after tax - preference dividends

Divide

Ordinary dividends

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Gearing

A

Long term liabilities

Divide

Share capital + reserves + long term liabilities

Accounting (6 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions