Ratios

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

Resource summary

	Created by Sharon Yates about 9 years ago