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6. Production/activity

  • Standard hours(actual) / budgeted hours x100
  • Standard hours(actual) / actual hours x100
  • Actual hours/ budgeted hours x100
  • Cos/Closing inventory

7. Capacity ratio

  • Actual hours/ budgeted hours x100
  • Cos/ average inventory
  • Standard hours(actual) / actual hours x100
  • Standard hours(actual) / budgeted hours x100

8. Asset turnover

  • Current assets - inventories/ current liabilities
  • Turnover- cost of material - bought in services
  • Turnover/ non current assets+ net current assets
  • Current assets/ current liabilities

9. Current ratio

  • Turnover/ non current assets + net current assets
  • Current asset - inventories/ current liabilities
  • Current asset/ current liabilities
  • Turnover - cost of sales - bought in services

10. What is trade receivables collection?

  • Average inventory/ cost of sales x365
  • Closing inventory/ cos x365
  • Trade receivable/ credit sales x 365
  • Trade payable / credit purchases x365

11. Average age of inventory

  • Average inv or closing inv/ cos x365
  • Trade receivable days/ credit sales x365
  • Trade payables day/ credit purchases x365

12. Interest cover

  • Debt/ ordinary share capital + reserves
  • Profit from operation/ finance costs
  • Debt/Debt + equity x100

13. What is value added?

  • Current assets - inventories / current liabilities
  • Turnover- cost of material - bought in services
  • Current assets/ current liability
  • Turnover / non current assets × net current assets

14. Quick ratio

  • Turnover/ non current assets + net current assets x100
  • Current assets - inventories/ current liabilities
  • Current assets/ current liabilities
  • Turnover- cost of material- bought in services

15. What is net profit margin?

  • Net profit/ sales x100
  • Gross profit/ sales x100
  • Operating profit / sales x100

16. Payables collection

  • Closing inventory/cos
  • Trade receivable/ credit sales x365
  • Trade payables/ credit purchases x365
  • Average inventory/cos

17. Debt to equity

  • Debt/ ordinary share capital + reserves
  • Profit from operation/ finance cost
  • Debt/ debt +equity x100

18. What is working capital cycle?

  • Operating profit/ net assets x100%
  • Operating profit/ non current asset + net curremt asset x100
  • Inv days + TR days - TP days
  • Operating profit/ capital employed x100%

19. Return on net assets

  • Operating profit/ non current assets + net current assets x100
  • Operating profit/ net assets x100
  • Inv days + trade rec days- trade pay days

20. What is gearing ratio?

  • Profit from operations/ finance costs
  • Debt/ debt + equity x100
  • Debt/ ordinary share capital + reserves