Ratios Flashcards by Rebecca Musson

Q

What is gross profit margin?

A

Gross profit/Revenue x100

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is markup?

A

Gross profit/Cost of sales x100

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is rate of inventory turnover in times?

A

Cost of sales/average inventory

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is the rate of inventory turnover in days?

A

Average inventory/Cost of sales x365

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is profit in relation to revenue?

A

Profit for the year/Revenue x100

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is expenses in relation to revenue?

A

Expenses/Revenue x100

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is return on capital employed?

A

Profit from operations/Capital employed x100

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is the current ratio?

A

Current assets/Current liabilities

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is the liquid capital ratio?

A

Current assets - inventory/current liabilities

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is trade receivable days?

A

Trade receivables/Credit sales x365

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is trade payable days?

A

Trade payables/Credit purchases x365

How well did you know this?

1

Not at all

2

3

4

5

Perfectly

Q

What is gearing?

A

Non-current liabilities/non-current liabilities + equity

How well did you know this?

1

Not at all

2

3

4

5

Perfectly