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23 Cards in this Set
- Front
- Back
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Return On Capital Employed (%)
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Operating profit/capital employed x 100
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earnings per share
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profit/number of shares
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current assets
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stock + receivables + cash and other cash equivalents
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working capital aka net current assets or current capital
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current assets - current liabilities
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net assets
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non current assets + current assets - current liabilities - non current liabilites
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assets employed
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working capital + non current assets
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capital employed
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total equity + non current liabilities
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balanced balance sheet
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assets = liabilities
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annueal depreciation
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initial cost - residual value/expected lifetime (years)
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gross profit
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revenue - cost of sales
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operating profit
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gross profit - expenses
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payback period
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year of revenue return on initial cost + net return of same year/ net return of following year
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annual return
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net return/no of years
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average rate of return
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annual return/inital cost x 100
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labour productivity
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output/no of staff
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punctuality
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deliveries on time/total deliveries x 100
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labour turnover
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number of staff leaving (in a year)/total staff x 100
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net profit margin
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net profit/revenue x 100
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asset turnover (The amount of sales generated for every pound's worth of assets.)
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revenue/net assets
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inventory turnover (A ratio showing how many times a company's inventory is sold and replaced over a period of time, usually a year)
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cost of goods sold/average inventories held
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payables (creditors) days
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payables/cost of sale x 365
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receivables (debtors) days
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receivables/revenue x 365
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how can a firm improve liquidity?
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decreasing stock levels, speeding up collection of debts, or slowing down payments to creditors
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