Ratios formulas Flashcards
1
Q
Gross profit margin
A
Gross profit / sales revenue x 100
2
Q
Operating profit margin
A
Operating profit x 100
3
Q
Mark - up
A
Gross profit / cost of goods sold x 100
4
Q
Net profit margin
A
Net profit / revenue x 100
5
Q
Return on capital employed
A
profit / capital employed x 100
6
Q
Current ratio
A
Current assets / current liabilities
7
Q
Liquid capital ratio
A
Current assets - inventory / current liabilities
8
Q
Trade receivable days
A
Trade receivables / credit sales x 365
9
Q
Trade payable days
A
Trade payable days / credit purchases x 365
10
Q
Inventory turnover
A
Average inventory (opening + closing/2) / closing sales x 365
