Ratios for analytical procedures Flashcards
1
Q
Gross profit %
A
Gross profit / Revenue x 100
2
Q
COS %
A
Cost of sales / Revenue x100
Relationship of cost - revenue
3
Q
ROCE
A
Operating profit / Equity + Debt
(x 100 for %)
Measure of how effectively resources are used to generate profit
4
Q
Current ratio
A
Current Assets : Current liabilities
Assess ability to pay current liabs from current assets Quick ratio (decut inventory from assets)
5
Q
Gearing ratio
A
Net debt : Equity
Assess reliance on external finance
6
Q
TR Days
A
trade receivables / revenue x 365
Ability to turn receivables into cash
7
Q
Inventory holding period
A
Inventory / COS x 365
8
Q
TP Days
A
Trade payables / Purchases x 365
9
Q
Operating cost %
A
Operating costs/oheads / Revenue x100
