ratio analysis

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12 Terms

1
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profitability

ROCE, Profit margins

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liquidity

current ratio

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risk

gearing ratio

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efficiency

payables days, receivables days, inventory turnover

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ROCE

Operating profit / capital employed x 100

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profit margins

Profit/Revenue x 100

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current ratio

current assets/current liabilities

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gearing

Non-current liabilities / Total Equity + Non-current liabilities x 100

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payables days

(Payables / cost of sales) x 365

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receivables days

Receivables / sales revenue x 365

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Inventory Turnover

cost of goods sold/average inventory held

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Capital employed

Total equity + non current liabilities