Ratio Equations Flashcards
(9 cards)
1
Q
Gross profit margin (%)
A
(Gross profit / revenue) X 100
2
Q
Profit from operations margin = Opreting profit margin (%)
A
(Operating profit / revenue) X 100
3
Q
Profit for the year margin (%)
A
(Profit for the year / revenue) X 100
4
Q
Return on capital employed (ROCE) (%)
A
(Operating cost / (Total equity + Non-current liabilities)) X 100
Where Total equity + Non-current liabilities = Capital employed
5
Q
Current ratio
A
Current assets / Current liabities
6
Q
Gearing (%)
A
(Non-current liabilities / (Total equity + Non-current liabilities)) X 100
7
Q
Payables days
A
(Payables / Cost of sales) X 365
8
Q
Receivables days
A
(Receivables / Revenue) X 365
9
Q
Inventory turnover
A
Cost of sales / Average inventories held
