ratios formula

Question 1

Gross Profit Margin
Profit margin
ROCE
Capital Employed
Return on equity

Answer 1

Gross Profit/revenue100
Profit /revenue100
PFO/Capital Employed
∗ 100
Total Equity+NCL
Return On Equity=
Profit For Year
Total Shareholder′sFunds

Question 2

current ratio
acid test

Answer 2

Current Assets /Current Liabilities
Current Assets−Inventory/
Current Liabilitie

Question 3

TR
TP

Answer 3

TR/credit sales*365
TP/credit purchase *365

Question 4

Rate of inventory turnover
Inventory turonver days

Answer 4

COGS/Avg inventory
Inventory

Average Inventory/COGS *365

Question 5

NCA turnover

Answer 5

revenue/NBV

Question 6

Working capital cycle
Net Working Assets To Revenue
Net Working Assets

Answer 6

Inventory Days + Trade Recievables Days −Trade Payables Days

Net Working Assets/Net Revenue∗ 100

Inventory+Trade Receivables-Trade Payables

Question 7

EPS
P/E
Gearing

Answer 7

Profit for Year/Number Of Ordinary Shares
Market Price/EPS
NCL/capital employed

Question 8

DPS
Divendet cover
Divident yield

Answer 8

Total Ordinary Dividends /Number Of Ordinary Shares

Profit For Year/divident

DPS/Market Price

Question 9

intrest cover
intrest gearing

Answer 9

PFO/intrest
intrest/PFO