Ratio (1) Flashcards
1
Q
Return on capital employed (ROCE)
A
Profit before interest and tax (PBIT) / (Share capital + reserves + non-current liabilities)
2
Q
Net profit margin
A
PBIT / Revenue
3
Q
Asset turnover
A
Revenue / (Share capital + reserves + non-current liabilities)
4
Q
Gross profit margin
A
Gross profit / Revenue
5
Q
Current ratio
A
Current assets / current liabilities
6
Q
Quick ratio
A
(Current assets - Inventories) / Current liabilities
7
Q
Inventory holding period
A
(Inventories / Cost of sales) * 365 days
8
Q
Receivables collection period
A
(Trade receivables / credit sales) * 365 days
9
Q
Payables payment period
A
(Trade payables / creidt purchases) * 365 days
10
Q
What is debt/equity?
A
Interest bearing debt / Share capital and reserves
11
Q
What is interest cover?
A
PBIT / Finance costs
