Shared Flashcard Set

Details

financial Ratio
basically it is ratios
8
Business
12th Grade
07/06/2017
Click here to study/print these flashcards.

Create your own flash cards! Sign up here.

Additional Business Flashcards

 

 

Cards

Term
Ratios
Definition

Gearing Ratios= non current liabilities/ capital employed x 100

 

ROCE= operating profit/ capital employed x100

 

 

inventory turnover= cost of goods sold/inventories

 

 

receivable days= receivables/annual revenue

 
Term
Falling current ratio
 Definition

1.4 two years ago 0.9 last year= worryingly sharp fall in liquidity

needs to be tackled through a rights issue.
Term
Falling gearing
Definition
Term
payable days
Definition
receivables/annual revenue x365
Term
inventory turnover
Definition
inventory turnover = cost of goods sold/inventories
Term
gross profit margin
 Definition
gross profit margin = gross profit / sales revenue x 100
Term
current ratio
 Definition
current assets/current liabilities
Term
ROCE
 Definition
operating / capital employed x 100
Supporting users have an ad free experience!