Brainscape's Knowledge GenomeTM

Browse over 1 million classes created by top students, professors, publishers, and experts.


See full index

Business Equations > Ratios > Flashcards

Ratios Flashcards

1
Q

Current ratio

A

Current assets / Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Acid test ratio

A

Current assets - inventory /
Current liabilities

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

Gross profit margin

A

Gross profit / revenue x 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Operating profit margin

A

Profit from operations / revenue x100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

Return from capital employed

A

Profit from operations /
Capital employed X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Trade receivables

A

Trade receivables / credit sales X 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Trade payables

A

Trade payables / credit purchases X 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Rate of inventory turnover

A

Cost of sales / average inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Gearing %

A

Non current liabilities / capital employed X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Price/ Earnings ratio

A

Market price per share / earning per share

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

Dividend Yield

A

Dividend per share / market price per share X 100

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Dividend cover

A

Profit for the year / annual dividend

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Inventory turnover

A

Cost of sales / average inventory

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Trade receivables days

A

Receivables / sales x365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Trade payable days

A

Payables / cost of sales x 365

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
16
Q

Payback period

A

Year 0 - (10,000)
Year 1 - 4000
Year 2 - 5000
Year 3 - 5000

2 years and 1000/5000 x12 = 2.4

17
Q

Balance sheet

A

Non current assets ( Fixed )
- buildings machinery and cars

Current assets
- inventories cash and receivables

Non current liabilities
- bank loan ( long term )

Current liabilities
- payables, overdraft , tax

Share cap
Retained prof

18
Q

Profit and loss account ( SCGOOTENDR)

A

Sales revenue
Cost of sales
Gross profit
Overheads
Operating profit
Tax
Expenses
Net profit
Dividends
Retained profits

19
Q

Total float

A

Lft - duration - est

20
Q

Free float

A

Next activity (est)- this activity (est) - duration

21
Q

Market share

A

Sales of a business / total market share x 100

22
Q

Market growth

A

This year sales - last years sales / last years x 100

23
Q

Capacity utilisation

A

Existing output over time period / max possible output over time period. x 100

Business Equations (2 decks)

Brainscape helps you reach your goals faster, through stronger study habits.
© 2024 Bold Learning Solutions. Terms and Conditions