Ratios Flashcards
Current Ratio
Current Assets/Current Liabilities
Acid Test Ratio
Current Assets-Stock/Current Liabilities
Gearing Ratio
Long Term Liabilities/Capitial employed*100
Debt to equity
Debt/Equity*100
Interest cover
Operating profit/Interest payable
Non-current assets turnover
revenue/non-current assets
Stock turnover
cost of sales/Average stock
Debtor Days
Trade receivables (debtors)/revenue*365
Creditor days
Trade payables (creditors)/cost of sales*365
Gross profit margin
Gross profit/Sales*100
Net profit margin
net profit/sales*100
Return on capital employed
operating profit/capital employed*100
Return on equity
profit for the year shareholder’s equity
Dividend per share
total dividends paid/number of shares issued
Dividend yield
dividend per share/market price of share*100
