Finance Flashcard

Front

ROCE

Back

Return on Capital Employed

Front

How is the current ratio calculated?

Back

Current Assets / Current Liabilities

Front

Which of the following is a measure of liquidity? Gross Profit Margin, Quick Ratio, Return on Equity, Debt to Equity Ratio

Back

Quick Ratio

Front

What is the formula for the quick ratio?

Back

(Current Assets - Inventory) / Current Liabilities

Front

Efficiency ratios are used to measure:

Back

How well a company uses its assets

Front

Calculate the Return on Capital Employed (ROCE) if the operating profit is £50,000 and the capital employed is £200,000.

Back

25%

Front

If a company has current assets of £150,000 and current liabilities of £100,000, what is the current ratio?

Back

1.5

Front

A company has current assets of £120,000, inventory of £30,000, and current liabilities of £80,000. What is the quick ratio?

Back

1.0

Front

Calculate the inventory turnover ratio if the cost of goods sold is £500,000 and the average inventory is £100,000.

Back

5 times

Front

What is the break-even point?

Back

The point where total revenue equals total costs