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6. Inventory Turnover

  • CA / CL
  • Loans / (Total Loans + Equity) x 100
  • Average inventory / Cost of Sales x 365
  • Trade Receivables / Credit Sales x 365

7. Current / Working Capital / Net Current Assets Ratio

  • (CA-inventory) / CL
  • CA / CL
  • Operating Expenses / Revenue x 100
  • Average inventory / Cost of Sales x 365

8. Return on Capital Employed (ROCE)

  • Operating Profit / (total equity + loans) x 100
  • Average inventory / Cost of Sales x 365
  • Operating Expenses / Revenue x 100
  • CA / CL

9. Acid Test / Quick / Liquid Ratio

  • Loans / (Total Loans + Equity) x 100
  • (CA-inventory) / CL
  • CA / CL
  • Average inventory / Cost of Sales x 365

10. Mark-up

  • Gross Profit / Revenue x 100
  • CA / CL
  • Gross Profit / Cost of Sales x 100
  • Operating Expenses / Revenue x 100

11. Trade Payable days or Payment Period

  • Average inventory / Cost of Sales x 365
  • (CA-inventory) / CL
  • Trade Payables / Credit Purchases x 365
  • Operating Profit / (total equity + loans) x 100