Ratios

9 flashcardsby ArtiMeiMei
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1
Gross Margin
Gross Profit/Sales * 100/1
2
Markup
Gross Profit/Cost of Sales * 100/1
3
Net Margin
Net Profit/Sales * 100/1
4
Return on Investment
Net Profit/Shareholder funds * 100/1
5
Current Ratio
Current Assets/Current Liabilities
6
Acid Test Ratio
Current Assets - Stock/Current Liabilities
7
Debtor collection period
Debtors/Sales * 365/1
8
Stock Turnover
Cost of Sales/Average Stock (Closing Stock+Opening Stock/2)
9
Creditor Payment Period
Creditors/Purchases * 365/1
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