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accounting ratios
| Question | Answer |
|---|---|
| Gross margin | (Revenue- COGS)/ Revenue |
| Net margin | Net profit /Revenue |
| ROCE | PBIT/ Total assets- Current liabilities |
| ROSF | Profit after tax/ Reserves + ordinary share capital |
| Net Asset turnover | Revenue/ Equity + Liabilities |
| Inventory turnover | Equity/ Cost of Sales |
| Trade Payables | Trade Payables/ Cost of sales |
| Trade receivables | Trade receivables/ Credit revenues |
| Current ratio | Current Assets/ Current Liabilities |
| Acid Test Ratio | (Current Assets- Inventories)/ current liabilities |
| Cash from operations | Cash from operations/ Current liabilities |
| Gearing | Long term liabilities/ share capital+ reserves+ long term liabilities |
| interest cover | PBIT: Loan Interest |
| Earnings per share | Profit after tax+ preference dividend/ No. of shares |
| Earnings per share | preference dividend+ profit after tax/ no. of shares |