Ratios needed for accounts analysis Flashcards
1
Q
Profit margins
A
gross or operating profit / sales revenue x 100 = %
2
Q
Return on capital employed
A
Operating profit / total equity + non current liabilities x100 + %
3
Q
Current ratio
A
Current assets / current liabilities = actual ratio
4
Q
Gearing ratio
A
non current liabilities / total equity + non current liabilities x100 = %
5
Q
Payables days
A
Payables / cost of sales x 365 = days
6
Q
Recievables days
A
recieveables / revenue x 365 = days
7
Q
Inventory turnover
A
costs of goods sold / average inventories sold = number of times a year
