Ratio Formulas Flashcards Preview

AAT Finances > Ratio Formulas > Flashcards

Flashcards in Ratio Formulas Deck (16)
Loading flashcards...
1
Q

Return on Capital employed =

A

Profit from operations/

Total Equity + Non-current liabilities x 100

2
Q

Return on Shareholders funds=

A

Profit after tax / Total equity x100

3
Q

Gross Profit percentage =

A

Gross profit / revenue x100

4
Q

Expense/ revenue percentage =

A

Specified expense / revenue x 100

5
Q

Operating Profit percentage =

A

Profit from operations / revenue x100

6
Q

Current Ratio =

A

Current assets / current labilities x :1

7
Q

Quick or “Acid” Ratio

A

Current assets -inventories/

Current liabilities x :1

8
Q

Inventory Turnover =

A

Cost of sales/ inventories x times

9
Q

Inventory Holding period=

A

Inventories/ cost of sales x 365 days

10
Q

Trade receivables collection period

A

Trade Receivables/ Revenue x 365 days

11
Q

Trade payables payment period

A

Trade payables/ Cost of sales x 365 days

12
Q

Working capital cycle=

A

Inventory days + receivables days - payable days

13
Q

Asset Turnover (net assets)

A

Revenue /

Total assets - current liabilities x times

14
Q

Asset Turnover (non-current assets)

A

Revenue/

Non-current assents x times

15
Q

Gearing =

A

Non-current liabilities/

Total equity + non-current liabilities x100

16
Q

Interest Cover=

A

Profit from operations/

Finance Costs xtimes