Ratios Flashcards
1
Q
How is gross profit margin calculated?
A
Gross profit/revenue x 100
2
Q
How is operating profit margin calculated ?
A
Operating profit/revenue x 100
3
Q
How is gearing calculated?
A
Debt/equity x 100
4
Q
How is return on capital employed calculated?
A
Operating profit/capital employed
5
Q
How is non-current asset turnover calculated?
A
Revenue/non-current assets
6
Q
How is inventory turnover calculated?
A
Cost of sales/ inventories
7
Q
How is inventory days calculated ?
A
Inventories/cost of sales x 365
8
Q
How is trade receivables collection period calculated?
A
Trade receivables/revenue x365
9
Q
How is trade payables payment period calculated?
A
Trade payables/credit purchases x 365
