Ratio Analysis Flashcards by hannah hunter

Q

What is current ratio?

A

Current assets/ current liabilities

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Q

What is acid test ratio?

A

current assets- inventory/ current liabilities.

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Q

What is gearing ratio?

A

(non current liabilities/ capital employed) x100

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Q

What is ROCE ratio?

A

(operation profit/ capital employed) x100

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Q

What is capital employed?

A

non-current liabilities + total equity.

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