Ratios Flashcards
1
Q
Liquid capital ratio
A
Current assets : current liabilities
Without stock
2
Q
Current ratio
A
Current asset : current liabilities
With stock
3
Q
Efficiency ratio (2 of them)
A
Trade payables ➗ credit purchases (x365)
Trade receivables ➗ credit sales (x365)
4
Q
Inventory turnover
A
Average inventory ➗ costs of sales (x365)
5
Q
Gross profit margin
A
Gross profit ➗ revenue (x100)
6
Q
Profit margin
A
Net profit ➗ revenue (x100)
7
Q
Return on capital employed
A
Net profit ➗ capital employed (x100)
8
Q
Mark up
A
Gross profit ➗ costs of sales (x100)
