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Ratio Analysis - formula and calculations (A Level Accounts)

Total questions: 19

Worksheet time: 10mins

Name
Class
Date
1.

Capital Gearing =

a)

Non Current Liabilities/ issued share capital + non current liabilities x 100

b)

Non Current Liabilities/ issued share capital - non current liabilities x 100

c)

Non Current Liabilities/ issued share capital + non current liabilities

d)

Non Current Liabilities/ issued share capital x 100

2.
Financial ratios that tell how well a company can pay off its short-term debts and meet unexpected needs for cash.
a)
liquidity ratios
b)
efficiency ratios
c)
leverage ratios
d)
profitability ratios
3.

Liquid Capital/Acid Test ratio =

a)

(Current Assets - Closing Inventory) - Current Liabilities

b)

Current Assets + Current Liabilities

c)

(Current Assets + Closing Inventory) / Current Liabilities

d)

(Current Assets - Inventory) / Current Liabilities

4.

Dividend per share / Market price per share x 100

a)

Dividend yield

b)

Dividend cover

c)

Interest cover

d)

Price Earnings

5.

Current Ratio

a)

Current Assets - Current Liabilities

b)

Current Assets + Current Liabilities

c)

Current Assets / Current Liabilities

d)

Current Assets / Total Assets

6.

Expenses / Revenue x 100 =

a)

Gross Profit margin

b)

Gross profit mark up

c)

Expenses in relation to revenue

d)

Profit in relation to revenue

7.

Earnings in pence (profit after tax in pence) / Number of ordinary shares issued

a)

Price Earnings

b)

Dividend cover

c)

Interest cover

d)

Earnings per share

8.

Gross profit margin =

a)

Gross Profit - Revenue x 100

b)

Revenue / Gross Profit x 100

c)

Gross Profit / Revenue x 100

d)

Revenue + Gross Profit x 100

9.

Profit after interest and tax / Ordinary share dividends paid =

a)

Dividend yield

b)

Interest cover

c)

Dividend cover

d)

Earnings per share

10.

Interest Cover =

a)

Profit before interest and tax / Interest payable

b)

Interest payable / Profit before interest and tax

c)

Profit after tax / Interest payable

d)

Profit before tax / Interest payable

11.

Trade Payable days =

a)

Trade payables / Purchases x 365

b)

Purchases / Trade Payables x 365

c)

Trade Payables / Credit purchases x 365

d)

Credit Purchases / Trade Payables x 365

12.

Current market price/ Earnings per share =

a)

Earnings per share

b)

Price Earnings

c)

Dividend cover

d)

Interest cover

13.

Gross Profit/ Cost of Sales x 100

a)

Mark up

b)

Margin

c)

Profit in relation to revenue

d)

Expenses in relation to revenue

14.

Profit from operations / (Equity + non current liabilities) x 100

a)

Profit in relation to revenue

b)

Gearing

c)

Return on Capital Employed

d)

Liquid capital ratio

15.

Profit in relation to revenue =

a)

Profit for the year / Revenue x 100

b)

Profit for the year (before interest and tax) / Revenue x 100

c)

Profit for the year (before tax) / Revenue x 100

d)

Profit from operations / Revenue x 100

16.

Inventory Turnover (days)

a)

Cost of sales / Average inventory x 365

b)

Average inventory / Cost of sales x 365

c)

Cost of Sales / Closing inventory x 365

d)

Closing inventory / Cost of sales x 365

17.

Trade Receivables / Credit Sales x 365

a)

Trade Payable days

b)

Current Ratio

c)

Inventory turnover (days)

d)

Trade receivable days

18.

Cost of Sales / Average Inventory

a)

Inventory turnover (days)

b)

Inventory turnover (times)

c)

Closing Inventory

d)

Opening Inventory

19.

Capital and Equity mean the same thing

a)

True

b)

False