Ratios Flashcards
1
Q
Net Profit
A
net profit/turnover x 100
2
Q
Mark-Up
A
gross profit/COGS x 100
3
Q
Return on Capital Employed
A
net profit/capital @ start x 100
4
Q
Current Ratio
A
Current Assets : Current Liabilities
5
Q
Acid Test Ratio
A
Current Assets - Stock/Current Liabilities
6
Q
Expense Ratio
A
Expense/turnover x 100
7
Q
Debtors Collection Period
A
Average Debtors x time period
\ total credit sales
8
Q
Creditors Payment Period
A
Average creditors x time period
/total credit purchases
9
Q
Fixed Asset Turnover
A
Net turnover/fixed assets @ net book value
10
Q
Rate of Stock Turnover
A
Cost of sales/average stock
11
Q
Gross Profit
A
gross profit/turnover x 100
