Business Ratios

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Operating Profit Margin
OPERATING PROFIT ÷ SALES REVENUE x100
1 of 10
Gross Profit Margin
GROSS PROFIT ÷ SALES REVENUE x100
2 of 10
ROCE
NET PROFIT ÷ CAPITAL EMPLOYED x100
3 of 10
Inventory (stock) Turnover
COST OF SALES ÷ AVERAGE (stock) INVENTORIES
4 of 10
Recievables Collection Period
RECIEVABLES (debtors) ÷ SALES REVENUE x365
5 of 10
Payables Payment Period
PAYABLES (creditrs) ÷ COST OF SALES x365
6 of 10
Asset Turnover
SALES REVENUE ÷ NET ASSETS
7 of 10
Current Asset Ratio
CURRENT ASSETS ÷ CURRENT LIABILITIES :1
8 of 10
Acid Test Ratio
CURRENT ASSETS - INVENTORY (stock) ÷ CURRENT LIABILITIES : 1
9 of 10
Gearing Ratio
NON-CURRENT LIABILITIES ÷ TOTAL EQUITY + NON-CURRENT LIABILITIES
10 of 10

Other cards in this set

Card 2

Front

Gross Profit Margin

Back

GROSS PROFIT ÷ SALES REVENUE x100

Card 3

Front

ROCE

Back

Preview of the front of card 3

Card 4

Front

Inventory (stock) Turnover

Back

Preview of the front of card 4

Card 5

Front

Recievables Collection Period

Back

Preview of the front of card 5
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