ratios Flashcards

1
Q

Return On Equity

A

______Profit After Tax_____

Share Capital + Reserves

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2
Q

Return on Capital Employed

A

Profit before tax and interest ______(operating profit)______
Equity + long term debt (loans)

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3
Q

Gross Profit Margin

A

______Gross Profit_______

Sales

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4
Q

Operating Profit Margin

A

______Operating Profit_____

Sales

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5
Q

Expense Ratio

A

Gross Profit Margin – Operating Profit Margin

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6
Q

Asset Turnover

A

_________Sales___________

Debt + Equity (long term loans + SH equity)

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7
Q

Inventory Turnover (times)

A

____Cost of Sales____

Inventory

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8
Q

Inventory Holding(days)

A

____ _Inventory__ __ x 365

Cost of sales

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9
Q

Debtors Turnover(days)

A

_______Sales_______

Trade receivables

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10
Q

Debtors Collection Period(times)

A

_______Trade Receivables____ x 365

Sales

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11
Q

Trade Credit Period(days)

A

_________Trade payables____ x 365

Cost of sales

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12
Q

Current Ratio

A

____Current Assets____

current Liabilities

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13
Q

Quick Ratio

A

Current assets – inventories

Current liabilities

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14
Q

Gearing

A

_____Debt____

Equity

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15
Q

Interest Cover (pence)

A

______PBIT____

Interest expense

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16
Q

Earnings per Share

A

Profits available to equity shareholders/

Average number of equity shares

17
Q

Price Earning Ratio

A

Market price per share/

Earnings per share

18
Q

Profit Retention Ratio

A

Earnings per share – Dividends per share
_________________
earnings per share