ratios Flashcards
1
Q
current ratio
A
current assets / current liabilities
2
Q
gearing ratio
A
non current liabilities / capital employed x 100
(capital employed is share capital, retained profit and NCL)
3
Q
profit margin
A
profit / revenue x 100
4
Q
return on capital employed (RoCE)
A
operating profit/ capital employed x 100
5
Q
inventory turnover ratio
A
cost of sales/ inventory
6
Q
receivable days ratio
A
trade receivables/ revenue x 365
7
Q
payable days ratio
A
trade payables / cost of sales x 365
