Ratio Calculations Flashcards
(13 cards)
1
Q
Return on capital employed
A
PBIT/TALCL
2
Q
Profit Margin
A
PBIT/Revenue
3
Q
Asset Turnover
A
Revenue/TALCL
4
Q
Return on Equity
A
Profit available for equity/ equity shareholder funds
5
Q
Current Ratio
A
CA:CL
6
Q
Quick Ratio (Acid Test)
A
CA less inventory:CL
7
Q
Inventory Turnover
A
Inventory/Cost of Sales x 365
8
Q
Receivables Collection Period
A
Trade receivables/credit sales x 365
9
Q
Payables Payment Period
A
Trade payables/ Credit purchases x365
10
Q
Debt/Equity
A
Interest bearing net debt/shareholder funds
11
Q
Debt+equity
A
Interest bearing net debt/shareholders funds+interest bearing net debt
12
Q
Net Debt
A
Long term debt net of any spare cash
13
Q
Interest Cover
A
PBIT/interest payable
