Financial Ratios Flashcards
1
Q
Trade payable days
A
(Payables/ cost of goods sold) X365
2
Q
Receivable days
A
(Receivables / revenue) X 365
3
Q
Gearing
A
(Non current liability/ (NCL + total equity ) X100
4
Q
Return on capital employed
A
Operating costs / ( non current liability + total equity)
5
Q
Current ratio
A
Current assets / current liabilities
6
Q
Operating profit margins
A
Operating profit/ revenue X 100
7
Q
Gross profit margin
A
Gross profit/ revenue X100
8
Q
Inventory turnover
A
Cost of good sold / average inventory held
