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