Key financial ratios
Sharon Yates
Flashcards by Sharon Yates, updated more than 1 year ago
Sharon Yates
Created by Sharon Yates over 8 years ago

Resource summary

Question Answer
Current Ratio Current Assets / Current Liabilities
Acid Test Current Assets-Inventory / Current Liabilities = _ : 1
Interest Cover Profit from Operations / Finance Costs = times
Gearing Non-current liabilities / Total equity + Non-currentl liabilities = x times
ROCE Profit from Operations / Total Equity + Non-current Liabilities
Return on Assets Profit from Operations / Total Assets
Return on Equity Profit after Tax / Total Equity
Gross Profit % Gross Profit / Revenue (Sales)
Operating Profit % Profit from Operations / Revenue
Inventory Turnover Cost of Sales / Inventories = _ times
Inventory Holding Period Inventories / Cost of Sales x 365 days
Trade receivables collection period Trade Receivables / Revenue x 365 days
Trade Payables Payment Period Trade Payables / Cost of Sales x 365 days
Working Capital Cycle Inventory days + Receivable Days less Payables Days
Asset turnover (total assets) Revenue / Total Assets = _ times
Asset Turnover (net assets) Revenue / Total assets - Current liabilities
Name 2 liquidity ratios Current ratio Acid test ratio
Name 2 financial position ratios Interest cover Gearing
Name 4 Profitability ratios ROCE ROE Gross Profit % Operating Profit % Return on total assets Expense/revenue %
Name 3 use of resources ratios Inventory turnover Inventory holding period Trade receivables collection period Trade payables payment period Working capital Cycle Asset turnover
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