financial ratios Flashcards
(36 cards)
gross profit margin
gross profit / revenue
net profit margin (and operating)
profit before interest and tax / revenue
or
(revenue-costs) / revenue
post tax profit (and net)
net profit / revenue
operating return on assets
operating profit / total assets
ROCE
Operating profit/ capital employed
or
EBITDA / capital employed
ROA (return on assets)
post tax (net) profit / total assets
ROE (return on equity)
post tax (net) profit / total equity
RE / TA
retained earnings / total assets
assets turnover
revenue / total assets
non-current assets turnover
revenue / non-current assets
net working capital turnover
revenue / net working capital
or
revenue / (inventory + receivable - payables)
current ratio
current assets - current liabilities
WC / TA
working capital / total assets
quick ratio
(current assets - inventory) / current liabilities
cash ratio
cash and other equivalent / current liabilities
inventory turnover period
(inventory / cost of sales) x 365 days
receivable collection period
(trade receivables / credit sales) x 365 days
payables payment period
(trade payables / credit purchases (COS)) x 365 days
cash cycle
inventory turnover period + receivables collection period - payables payment period
operating cycle
inventory turnover period + receivables collection period
debt ratio
total debts / total assets
debt to equity ratio (book value)
total debts / total equity
debt to equity ratio (market value)
total debts / market capitalisation
gearing (book value)
long term debt / capital employed (total assets - current liabilities)
