Unit 3 Formulae

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Current Ratio
Current assets/ current liabilities
1 of 12
Acid Test Ratio
Liquid assets / current liabilities
2 of 12
Liquid Assets
Current assets - inventories (stock)
3 of 12
Return on Capital Employed (ROCE)
Operating profit/ (total equity + non current liabilities)
4 of 12
Capital Employed
Total equity + non current liabilities
5 of 12
Asset Turnover
Sales / net assets
6 of 12
Inventory Turnover
Cost of sales / average inventories held
7 of 12
Payables (Creditor) Days
(Payables / cost of sales ) x 365
8 of 12
Receivables (Debtor)
(Receivables/ revenues) x 365
9 of 12
Gearing
(Non current liabilities/ capital employed) x 100
10 of 12
Dividend per Share (in Pence)
Total dividends/ number of issued ordinary shares
11 of 12
Dividend Yield (%)
(Ordinary share dividend (in pence) / current market price (in pence)) x 100
12 of 12

Other cards in this set

Card 2

Front

Liquid assets / current liabilities

Back

Acid Test Ratio

Card 3

Front

Current assets - inventories (stock)

Back

Preview of the back of card 3

Card 4

Front

Operating profit/ (total equity + non current liabilities)

Back

Preview of the back of card 4

Card 5

Front

Total equity + non current liabilities

Back

Preview of the back of card 5
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