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Accounting Ratios

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arbeonix's version from 2017-01-03 16:13

Section

Question Answer
Gross Profit Margin(Gross Profit / Revenue) x 100/1
Net Profit Margin (Net Profit before tax & interest / Revenue) x 100/1
ROCE (Returns of Capital Employed)Net Profit before tax & interest / capital employed (Net assets) x100/1
Current RatioCurrent AssetsCurrent Liabilities
Acid TestCurrent Assets less InventoriesCurrent Liabilities
Inventory TurnoverAverage Intventories / Cost of goods sold x 365 days
Trade Receivables PeriodTrade Receivables / Revenue x 365 days.
Trade Payables PeriodTrade Payables / cost of goods sold x 365 days
Gearing NCL / Total Equity x 100/1
Intrest Cover Profit before tax & interest charges.
memorize