Ratio analysis Flashcards
1
Q
Gross profit margin
A
Gross profit / Sales revenue x 100
2
Q
Operating profit margin
A
Operating profit / Sales revenue x 100
3
Q
Profit for the year margin
A
Profit for the year / Sales revenue x 100
4
Q
Return on capital employed
A
Operating profit / Total equity + Non-current liabilities x 100
5
Q
Current ratio
A
Current assets:Current liabilities
6
Q
Gearing
A
Non-current liabilities / Total equity + Non-current liabilities
7
Q
Payables days
A
Payables / Cost of sales x 365
8
Q
Receivables days
A
Receivables / Sales revenue x 365
9
Q
Inventory turnover
A
Cost of sales / Average inventories held
