RATIOS

Question 1

Gross Profit %

Answer 1

Gross Profit / Revenue * 100

Question 2

Net profit %

Answer 2

Net profit / Revenue * 100

Question 3

ROCE

Answer 3

Net Profit / Capital Employed (Equity + LTL) * 100

Question 4

CURRENT RATIO

Answer 4

Current Assets / Current Liabilities

Question 5

QUICK RATIO

Answer 5

(Current Assets - Stock) / Current Liabilities

Question 6

Acid Test Ratio

Answer 6

(Current Assets - Stock) / Current Liabilities

Question 7

STOCK TURNOVER

Answer 7

Stock / Cost of Sales * 365

Question 8

Debtors Collection Period

Answer 8

Debtors / Credit Sales (or Turnover) * 365

Question 9

Creditors Collection Period

Answer 9

Creditors / Credit Purchases (or Cost of Sale) * 365

Question 10

Working Capital Cycle (Days)

Answer 10

Stock Days + Debtor Collection Days + Creditor Payment Days * 365

Question 11

Asset Turnover

Answer 11

Revenue / (Total Assets - Current Liabilities) (Capital Employed) or Revenue / Total Assets

Question 12

Gearing

Answer 12

Long Term Liabilities / (Total Equity + Long Term Liabilities) *100

Question 13

Interest Cover

Answer 13

Net Profit / Interest