Gross Profit Margin
Operating profit margin
Expenses ratio
Asset turnover
Return on capital Employed
capital employed
Return on total assets
Return on equity
Earnings per share
Liquidity ratios
Profitability and efficiency ratios
Return on shareholder's funds
Acid test ratio
Inventory holding period
Assets turnover (net assets)
Gearing
Current ratio
Quick ratio
Two fundamental characteristics
Income
Inventory holding period
Inventory turnover
Receivables collection period
Payables payment period
Working capital cycle equation
What is the working capital cycle
Equations that show financial position
Gearing
Interest cover
What are the gross profit margin and operating profit margin used for?
What does a high expenses ratio show?
What does asset turnover show
What does the return on capital employed show?
What does the current ratio show and is it better higher or lower?
Quick ratio what does it show, better to be higher or lower?
Inventory holding period, is this better or worse if higher or lower?
Receivables collection period, do we want this higher or lower?
Current ratio goes from 2.3:1 to 5.1:1 is this good or bad? Why?
inventory turnover increases from 4 to 5.6 times, better or worse? Why?
trade receivables collection period goes from 30 to 40 days, is this better or worse? and why?
Trade payables went from 55 to 41, is this better or worse? and why?
Suggest 2 ways to improve the working capital cycle and 2 problems as a result
What does gearing Show? better to be higher or lower?
Interest cover
Framework is broken down into sevon section
The qualitative characteristics
The udnerlying assumptions
accrual concept
going conern
Comparibility
VErifiability
Timeliness
Understandability
The elements of the financial statements
Define asset
Liabilities define
Define Equity
Define income
define expenses
Recognition of the elements in the financial statements
4 ways of measurement
Bonus issue of shares, what happens?
Share capital
Nominal value of shares
Market value of shares
Allotted share capital
Ordinary shares
Preference shares
Rights of issue of shares, what happens?
What statements show financial performance?
Expenses by nature, give example
Expenses by function, give example
What is cash
What is cash equivalents
