Accounting calc

    Cards (22)

    • Return on Ordinary Shareholders' funds
      Profit for the year x 100 / Share capital + reserves
    • Return on Ordinary Shareholders' funds
      • Measures the return to ordinary shareholders only
    • Return on capital employed (ROCE)

      Operating profit x 100 / Share capital + reserves + NC liabilities
    • Return on capital employed (ROCE)

      • Measures the return to all providers of long-term finance
    • Gross profit margin
      Gross profit x 100 / Sales revenue
    • Gross profit margin
      • Measures how much profit is made between the buying and selling of goods before other expenses are taken into account
    • Operating profit margin
      Operating profit x 100 / Sales revenue
    • Operating profit margin
      • Measures the profits made from trading operations before interest and tax are taken into account
    • Sales revenue to Capital employed (Asset turnover ratio)

      Sales revenue / Capital employed
    • Sales revenue to Capital employed (Asset turnover ratio)
      • Measures the effectiveness of capital employed in generating sales
    • ROCE %

      Operating Profit x Asset Turnover
    • Inventory turnover period

      Inventory x 365 / COGS
    • Inventory turnover period

      • Measures the number of days for which inventory is held
    • Average settlement period for receivables (Receivables days)

      Trade Receivables x 365 / (Credit) Sales
    • Average settlement period for receivables (Receivables days)

      • Measures how long the business takes to collect amounts due from credit sales
    • Average settlement period for Payables (Payables days)

      Trade Payables x 365 / (Credit) Purchases (or COGS if purchases figure not available)
    • Average settlement period for Payables (Payables days)
      • Measures how long a credit period is taken from suppliers
    • Operating cash cycle (Working capital cycle)
      Inventory turnover period + Receivables days - Payables days
    • Current ratio
      Current assets / Current liabilities
    • Current ratio
      • Measures by how much current assets "cover" current liabilities
    • Acid test (quick ratio)

      Current assets - inventory / Current liabilities
    • Acid test (quick ratio)

      • Measures by how much the most liquid current assets "cover" current liabilities
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