Ratios Flashcards
1
Q
ROCE
A
PBIT / TA - CL
PBIT / Long term debt + Equity
PBIT / Capital Employed
2
Q
Gross Profit Margin
A
Gross Profit / Revenue
3
Q
Operating Profit Margin
A
PBIT / Revenue
4
Q
Return on Equity
A
Profit after tax and pref divi / (S.C. + Reserves)
5
Q
Asset Turnover
A
Revenue / Capital Employed
6
Q
Current Ratio
A
CA / CL
7
Q
Quick (Acid) Test
A
CA - Inv / CL
8
Q
Inventory Turnover
A
COS / Inv
9
Q
Inventory Days
A
Inv / COS * 365
10
Q
Receivables Days
A
Trade Receivables / Credit Turnover * 365
11
Q
Payables Days
A
Trade Payables / Credit Purchases * 365
Can use COS instead of Credit Purchases
12
Q
Debt to Equity Ratio
A
Long tern debt / Equity
13
Q
Gearing
A
Long term debt / (Long term debt + Equity)
14
Q
Interest Cover
A
PBIT / Interest Payable
15
Q
EPS
A
Profit after tax and pref divi / No. shares
