Ratios Flashcards
1
Q
Roce
A
operating profit/av capital employed
2
Q
gross profit margin
A
gross profit/sales revenue
3
Q
gross profit mark up
A
gross profit/cost of sales
4
Q
operating profit margin
A
operating profit/ sales revenue
5
Q
net profit margin
A
net profit after tax/sales revenue
6
Q
NCA turnover
A
sales revenue/NCA
7
Q
current ratio
A
current assets/ current liabilities
8
Q
quick ratio
A
current assets excluding inventories/ current liabilities
9
Q
inventory turnover per annum
A
cost of sales/ inventory
10
Q
inventory turnover days
A
inventory/cost of sales *365
11
Q
trade receivables collection period
A
trade receivable/ credit sales
12
Q
trade payables collection period
A
trade payable/credit purchases
13
Q
gearing ratio
A
debt/total capital employed
14
Q
interest cover
A
operating profit/interest payable
