Financial Ratios Flashcards L4 DAIF

Front

Return on Capital Employed (ROCE)

Back

Operating profit ÷ Capital employed × 100 (Capital employed = Total equity + Non-current liabilities)

Front

Return on Shareholders’ Funds

Back

Profit after tax ÷ Total equity × 100

Front

Gross Profit Margin

Back

Gross profit ÷ Revenue × 100

Front

Operating profit ÷ Revenue × 100

Back

Operating Profit Margin

Front

Expense/Revenue Percentage

Back

Specified expense ÷ Revenue × 100

Front

Current Ratio

Back

Current assets ÷ Current liabilities

Front

(Current assets – Inventories) ÷ Current liabilities

Back

Quick Ratio or Acid Test Ratio

Front

Inventory Turnover

Back

Cost of sales ÷ Inventories

Front

Inventory Holding Period (days)

Back

Inventories ÷ Cost of sales × 365

Front

Receivables Collection Period (days)

Back

Trade receivables ÷ Revenue × 365