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Ratios
AAT finance ratios
Term | Definition |
---|---|
Return on Capital Employed | Profit from operations/total equity + Non current liabilities |
Return on shareholders' funds | Profit after tax / total equity |
Gross Profit Margin | Gross profit / Revenue |
Expense percentage | Specified expenses / Revenue |
Operating Profit percentage | Profit from operations / Revenue |
Current Ratio | Current assets /current liabilities |
Quick Ratio | Current assets - inventory / current liabilities |
Inventory turnover | Cost of sales / Inventories = x times |
Inventory holding period | Inventories / Cost of sales x 365 days |
Receivables collection period | Receivables / revenue x 365 days |
Payables payment period | Payables / cost of sales x 365 days |
Working capital cycle | Inventory days + Receivables days - Payables days |
Net Asset Turnover | Revenue / Total Assets - Current liabilities |
Non Current Asset Turnover | Revenue / Non-current assets |
Interest cover | Profit from Operations / Finance Costs |
Gearing | Non current Liabilities / Total Equity + Non current liabilities |