Ratios Flashcards
1
Q
Current assets - current liabilities =
A
Current ratio
2
Q
Current assets - stock / current liabilities
A
Acid test ratio
3
Q
What are the 2 liquidity ratio?
A
- current ratio
- acid test ratio
4
Q
What are the 2 solvency ratios?
A
- gearing ratio
- interest cover
5
Q
Long term liabilities / capital employed x 100
A
Gearing ratio
6
Q
Profit before tax and interest (gross profit) / interest
A
Internet cover
7
Q
What are the 4 profitability ratios?
A
- gross profit margin
- net profit margin
-return on capital employed (ROCE) - return on equity
8
Q
What are the 4 efficiency/activity ratios?
A
- creditor days
- debtor days
- non current asset turnover
- stock turnover
9
Q
What are the 3 shareholder ratio?
A
- dividend per share
- dividend yield
- earnings per share/price ( earnings ratio )
10
Q
What is the GPM formula ?
A
=GP/ sales x 100
11
Q
What is the net profit margin formula?
A
= NP/sales x 100
12
Q
What is the Return on capital employed formula (ROCE)?
A
Profit before interest and tax (operating profit) / capital employed x 100
13
Q
What is the return on equity formula?
A
Net profit / Equity
