Ratios Flashcards
1
Q
Return on capital employed (ROCE)
A
Operating profit / Equity + non current liabilities x 100
2
Q
Operating profit margin
A
Operating profit / revenue x 100
3
Q
Gross profit margin
A
Gross profit / revenue x 100
4
Q
How to find gross profit
A
Revenue - cost of sales
5
Q
How to find operating profit
A
Gross profit - operating costs
6
Q
What is ROCE used to measure
A
Return on investment by business
7
Q
Current ratio
A
Current assets / Current liabilities
8
Q
Acid-test ratio
A
Current assets (excluding inventories) / current liabilities
9
Q
Payable days
A
Trade payables / cost of sales x 365
10
Q
Receivable days
A
Trade receivables / revenue? x 365
11
Q
Inventory turnover
A
Average inventories held / cost of sales x 365
12
Q
Gearing ratio
A
Non-current liabilities / total equity + long term liabilities x 100
