Ratios Flashcards
return on shareholder’s funds
net profit for period/share capital + reserves
ROCE
profit before interest and tax/equity + net debt
gross profit percentage
gross profit/revenue x 100
cost of sales percentage
COS/revenue x 100
operating cost %
(operating costs/overheads x 100)/revenue
net margin/operating margin
profit before interest and tax/revenue x 100
current ratio
current assets:current liabilities
quick ratio
(receivables+current investments + cash)/:liabilities
gearing ratio
net debt/equity
interest cover
profit before interest payable/interest payable
net asset turnover
revenue/capital employed
inventory turnover
cost of sales/inventories
inventory days
average inventory x 365/COS
trade receivables collection period
trade receivables x 365/revenue
trade payables payment period
trade payables x 365/credit purchases
