financial ratios Flashcards
(10 cards)
1
Q
total equity
A
share capital + reserves
2
Q
capital employed
A
total equity + non current liabilities
3
Q
working capital
A
current assets - current liabilities
4
Q
profitability
A
operating profit / capital employed x100
5
Q
liquidity
A
current assets/ current liabilities
6
Q
gearing
A
non current liabilities/ capital employed x100
7
Q
list the efficiency ratios
A
payable days
receivable days
inventory turnover rate
8
Q
payable days
A
payables/ cost of sales x365
9
Q
receivable days
A
receivables/ sales revenue x365
10
Q
inventory turnover
A
cost of goods sold/ inventories
