Calc 7

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Created by
Myka Diaz

Cards (12)

  • Net current asset calc (working capital)
    CA - CL
  • Net asset calc
    Non current asset + current asset = x
    X - current and non current liabilities = answer
  • Capital employed calc
    Shareholders capital + retained profit - drawings
  • Gearing ratio = capital structure ratio
    measures proportion of a business‘ capital provided by debt
  • Gearing ratio
    Non current liabilities/ capital employed x 100
  • Capital employed
    total equity + non current liabilities
  • ROCE
    Operating profit/ capital employed x 100
  • Current ratio
    Current assets/ current liabilities
  • Current ratio = liquidity ratio
    How easy a firm can turn Its assets into cash to pay off short term debts (eg. Overdrafts/trade payables)
  • Inventory turnover
    Cost of sales/ revenue
  • Trade receivable
    Owed to a business
  • Trade payables
    Owed by a business to suppliers