Formulas

Question 1

Net working capital
(Liquidity)

Answer 1

= Current assets - Amounts payable ST

Question 2

Current ratio
(Liquidity)

Answer 2

= Current assets / Amounts payable ST

Question 3

Quick ratio
(Liquidity)

Answer 3

= Amounts receivable <1y + Current investments + Cash at bank and in hand / Amounts payable ST

Question 4

Inventory rotation
(Liquidity)

Answer 4

= Cost of goods sold
/ Inventory goods for resale

Question 5

Settlement period for customers
(Liquidity)

Answer 5

= Amounts receivable x 365
/ Sales per year (incl. VAT)

Question 6

Settlement period for suppliers
(Liquidity)

Answer 6

= Supplier debt x 365
/ Purchases per year (incl. VAT)

Question 7

Solvency ratio or financial independence (%)
(Solvency)

Answer 7

= Equity / Total liabilities x 100

Question 8

Debt ratio (%)
(Solvency)

Answer 8

= Amounts payable / Total liabilities
x 100

Question 9

Sales margin (%)
(Profitability)

Answer 9

= Result independent of the financing method / Turnover x 100

Question 10

Return on investment (%)
(Profitability)

Answer 10

= Result independent of the financing method / Total assets x 100

Question 11

Return on equity (%)
(Profitability)

Answer 11

= Profit / Equity x 100

Question 12

Cash flow
(Cash flow)

Answer 12

= Profit + ‘non-cash expenses’

Question 13

Debt redemption capacity
(Cash flow)

Answer 13

= Profit / Equity x 100