Business Formulas

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  • Created by: regswifty
  • Created on: 03-05-16 22:40
Solvency: Gearing Ratio
(Creditors after one year ÷ Creditors after one year+net assets employed) X 100
1 of 11
Solvency: Interest Cover Ratio
(Profit before tax + Interest) ÷ Interest
2 of 11
Liquidity: Current Ratio
Current Assets ÷ Current Liabilities
3 of 11
Liquidity: Acid Test
Current Assets - Stock ÷ Current Liabilities
4 of 11
Activity: Stock Turnover
Cost of Sales ÷ Stock
5 of 11
Activity: Debtor Turnover
(Debtors ÷ Sales Revenue) X 365
6 of 11
Activity: Fixed Asset Turnover
Sales Revenue ÷ Fixed Assets
7 of 11
Profitability: Gross Profit Margin
(Gross Profit ÷ Revenue) X 100
8 of 11
Profitability: Net Profit Margin
(Net Profit ÷ Revenue) X 100
9 of 11
Profitability: Return on Capital Employed
(Operating Profit ÷ Creditors after one year + Net Assets Employed) X 100
10 of 11
Profitability: Return on Equity
(Net Profit ÷ Equity Shareholders Funds) X 100
11 of 11

Other cards in this set

Card 2

Front

Solvency: Interest Cover Ratio

Back

(Profit before tax + Interest) ÷ Interest

Card 3

Front

Liquidity: Current Ratio

Back

Preview of the front of card 3

Card 4

Front

Liquidity: Acid Test

Back

Preview of the front of card 4

Card 5

Front

Activity: Stock Turnover

Back

Preview of the front of card 5
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