SAMPLE - OCR
SAMPLE - OCR
SAMPLE - OCR
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Profitability Ratios<br />
Liquidity Ratios<br />
Efficiency Ratios<br />
Capital Structure Ratios<br />
Appendix 1<br />
Table of formulae for ratio analysis<br />
Gross Profit Margin<br />
Net Profit Margin<br />
Return on Capital Employed<br />
(ROCE)<br />
Current Ratio<br />
Acid Test (Quick) Ratio<br />
Stock Turnover<br />
Debtors Collection Period<br />
Creditors Collection Period<br />
Fixed Assets Turnover<br />
Net Current Assets Turnover<br />
Gearing Ratio<br />
Gross Profit<br />
---------------------------------- X 100<br />
Sales<br />
Operating Profit after Tax<br />
---------------------------------- X 100<br />
Sales<br />
Operating Profit after Tax<br />
---------------------------------- X 100<br />
Capital Employed<br />
Current Assets<br />
---------------------------<br />
Current Liabilities<br />
Current Assets less Stock<br />
---------------------------<br />
Current Liabilities<br />
Cost of Goods Sold<br />
---------------------------(No of times)<br />
Average Stock*<br />
Debtors due within one year<br />
------------------------------------ x 365 (days)<br />
Credit sales<br />
Creditors due within one year<br />
------------------------------------ x 365 (days)<br />
Credit purchases<br />
Sales<br />
--------------------------<br />
Fixed Assets<br />
Sales<br />
--------------------------<br />
Net Current Assets<br />
Long Term Liabilities<br />
--------------------------<br />
Capital Employed<br />
* Average stock calculation is (opening stock + closing stock) divided by 2.<br />
<strong>OCR</strong> Level 3 Principal Learning in Business, Administration and Finance, Unit F283 Finance and accounting in business (sample)
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