Title: Essentials of Strategic Management Revision Test

Lecture strategic management accounting




-profitability
-liquidity
Areas of analysis
-efficiency
-gearing
Profit before interest and tax/ capital
Return on capital employed x100
employed formula
Expresses profit relative to capital used
Gross profit margin Gross profit/ revenue x100
formula


Net profit margin Profit before interest and tax/ revenue x100
formula
Asset turnover Revenue/ total assets
formula
Current ratio Current assets/ current liabilities
Quick ratio Currents assets-inventory / current
liabilities
Receivables period Average receivables/ credit sales x365
formula
Inventory period Average inventories/ cost of sales x365
formula
Payables period Average payables/cost of sales x 365
formula
Cash operating Inventory days + receivable days - payables
cycle formula days
Gearing ratio Long term debt/ (long term debt + equity)
formula x100

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