Interpretation of Accounting Ratios Flashcards
1
Q
GP Margin Ratio
A
GP / Revenue
2
Q
ROCE ratio
A
PBIT / Capital employed
Where Capital employed -
Equity + LT Liability
3
Q
Operating profit margin
A
PBIT / Revenue
4
Q
Asset Turnover
A
Total Asset / Revenue OR
Net Asset / Revenue
5
Q
Inventory Turnover
A
Closing Balance Inventory / COS x 365
OR preferred
Ave Inventory / COS x 365
