Ratios Flashcards
(9 cards)
1
Q
Current Ratio
A
Current assets/Current liabilities
2
Q
Liquid capital ratio
A
Current assets- inventory/current liabilities
3
Q
Trade receivable days
A
Trade receivable/Credit sales times 365
4
Q
Trade payable days
A
Trade payables/ credit purchases times 365
5
Q
Inventory Turnover
A
Average inventory/ cost of sales times 365
6
Q
Gross - Profit margin
A
Gross profit/ Revenue times 100
7
Q
Mark-up
A
Gross profit/ revenue times 100
8
Q
Profit margin
A
Profit/ revenue times 100
9
Q
Return on capital employed
A
Profit/ capital employed times 100
