Financial accounting ratios 0.0 / 5 ? AccountingRatiosUniversityNone Created by: ElishaGCreated on: 09-05-19 18:24 What is the formula for current ratio? Liquidity ratio. Current assets/current liabilities. 1 of 10 What is the formula for quick ratio (acid test)? Liquidity ratio. (Current assets - inventory)/current liabilities. 2 of 10 What is the formula for Inventory turnover? Working capital ratio. Cost of goods sold/closing inventory. 3 of 10 What is the formula for Inventory days? Working capital ratio. 365/inventory turnover. 4 of 10 What is the formula for Debtor days? Working capital ratio. (Trade debtors/credit sales) x365 5 of 10 What is the formula for Creditor days? Working capital ratio. (Trade creditors/credit purchases) x365 6 of 10 What is the formula for Credit purchases? Cost of sales -PY closing stock + CY opening stock. 7 of 10 What is the formula for working capital? Working capital ratio. Inventory days + debtor days - creditor days. 8 of 10 What is the formula for Gross profit margin? Profitability ratio. (Gross profit/ sales) x100. 9 of 10 What is the formula for Operating profit margin? Profitability ratio. (Profit before interest and tax/sales) x100. 10 of 10

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