Ratios Flashcards
1
Q
Gross profit margin?
A
Gross profit / revenue
2
Q
Inventory holding period?
A
(Inventory / Cost of Sales) * 365
3
Q
Gearing?
A
Borrowings/(Total equity + borrowings)
4
Q
Interest cover?
A
(Profit before tax + finance costs)/Finance costs
5
Q
Inventory turnover?
A
Cost of sales / inventory
6
Q
Receivables collection period?
A
(Receivables / sales) * 365
7
Q
Payables payment period?
A
(Payables / cost of sales) * 365
8
Q
Quick ratio?
A
(Current assets - inventory)/Current liabilities
9
Q
Current ratio?
A
(Current assets/Curernt liabilities)
10
Q
Total equity and liabilities?
A
Misstatement / Total equity and liabilities
11
Q
Profit before tax?
A
Misstatement / profit before tax
12
Q
Total assets?
A
Misstatement / total assets
13
Q
Revenue materiality?
A
0.5% - 1%
14
Q
Total assets?
A
1% - 2%
15
Q
Gross profit?
A
1% - 2%
