Ratios

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  • Created by: Hannah
  • Created on: 01-05-13 22:05

Gross Profit Margin

                    Gross Profit     X 100 = x%
                      Sales

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Net Profit Margin

                Net Profit        X 100 =   x%
                   Sales

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Current Ratio

                  Current Assets                  = x:1
                Current Liabilities

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Acid Test Ratio

          Current Assets - Inventories    =  x:1
               Current Liabilities

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Gross Profit Mark-up

                          Gross Profit       X 100 =  x%            
           Cost of Sales

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Overheads in Realtion to Revenue

         Overheads (expenses) X 100 = x%
                   Revenue

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ROCE. Return On Capital Employed

          

              Net Profit                           X100 =x%
Capital Employed (net assets)

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Rate of Inventory Turnover

  Average Inventory*      X 365 =  x:1
 Cost of Sales

* Opening Stock + Closing Stock
                         2

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Trade Recievable Days (DEBTORS)

      Trade Recievables            X 365   = x:1
        Credit Revenue

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Trade Payable Days (CREDITORS)

         Trade Payables             X 365 = x:1
        Credit Purchases

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Gearing

              Debt (LTL + Preference Shares)
            Equity (Share Capital + Reserves) 

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