Ratios Flashcards
1
Q
Return on capital
A
Profit before interest and tax/ total long term capital
2
Q
Net profit margin
A
Profit before interest and tax / revenue
3
Q
Asset turnover
A
Revenue/ total long term capital
4
Q
Learn
A
Roce = asset turnover * net profit margin
5
Q
Gross profit margin
A
Gross profit / revenue
6
Q
Current ratio
A
Current assets / current liabilities
7
Q
Quick ratio
A
Current assets - inventory / current liabilities
8
Q
Inventory days
A
Inventory / cost of sales * 365 days
9
Q
Receivables days
A
Receivables/ revenue * 365
10
Q
Payables days
A
Payables/ purchases * 365
11
Q
Gearing
A
Non current liabilities / share capital and reserves
