A2 Ratio Analysis Formulas

?

Current Ratios

Current assets ÷ Current liabilities

1 of 9

Acid Test Ratio

Current assets – Inventory ÷ Current liabilities

2 of 9

Return on Capital Employed (ROCE)

Operation profit ÷ Total equity plus non-current liabilities x 100

3 of 9

Gearing

Non-current liabilities ÷ Total equity plus non-current liabilities x 100

4 of 9

Inventory Turnover

Cost of sales ÷ Inventory

5 of 9

Gross Profit Margin

Gross Profit ÷ Revenue x 100

6 of 9

Net Profit Margin

Net Profit ÷ Revenue x 100

7 of 9

Receivables Days

Receivables ÷ Revenue x 365

8 of 9

Payables Days

Payables ÷ Cost of sales x 365

9 of 9

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all Financial Planning resources »