Flashcards
Formulas
Flashcards do conjunto (28)
- 1Financial ratiosProfitability
Liquidity
Financial Efficiency
Shareholder Investment
Gearing - 2Profitability ratios (definition)Compares gross and operating profit with sales revenue
It is an important measure for profit performance - 3Liquidity ratios (definition)Measures how easily the business could meet their short-term debts and liabilities
- 4Financial efficiency ratios (definition)Indication of how efficiently the business is allocating its resources and collecting its debts
- 5Shareholder ratios (definition)Can be used by existing or potential shareholders to assess the rate of return on shares and prospects for their investments
- 6Gearing ratios (definition)Examines to which degree the business is relying on long-term loans to finance its business operations
- 7Profitability ratios (formula)Gross Profit Margin
Operating Profit Margin
Return on Capital Employed - 8Liquidity ratios (formula)Current ratio
Acid test ratio - 9Financial efficiency ratios (formula)Inventory turnover ratio
Days' sales in trade receivables - 10Shareholder investment ratios (formula)Dividend yield ratio
Dividend cover ratio - 11Gearing ratios (formula)Interest cover ratio
Gearing ratio - 12Current ratiocurrent assets/current liabilities
- 13Acid test ratiocurrent assets - stock/current liabilities
- 14Gross profit marginGross profit/revenue * 100
Gross profit: revenue - cost of sales - 15Operating profit marginOperating profit/revenue * 100
- 16RoCEOperating profit/capital employed * 100
- 17Capital employed(non-current assets + current assets) - current liabilities
OR
non-current liabilities + shareholders' equity - 18Inventory turnover ratioCost of goods sold/value of inventories
- 19Days' Sales in Trade Receivablestrade accounts receivables/revenue * 365
- 20Dividend yielddividend per share/current share price * 100
dividend per share = total annual dividends/total # of shares issued - 21Dividend coverprofit for the year/annual dividend
- 22Price/Earningcurrent share price/earnings per share
Earnings per share = profit for the year/total # of shares issued - 23Gearing ratiolong-term loans/capital employed * 100
OR
non-current liabilities/shareholders' equity + non-current liabilities * 100 - 24Interest cover ratiooperating profit (before tax & interest)/annual interest paid
- 25Income elasticity of demand% change in demand/ % change in income
- 26Promotional elasticity of demand% change in demand/ % change in promotional spending
- 27Price elasticity of demand% change in demand/ % change in price
- 28Cross elasticity of demand% change in demand for product A/ %change in price for product B
Informações
- Descrição
- A levels Business FlashCards sobre Formulas, criado por Karina A em 16-05-2017.
- Criado por
- Karina A
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