3.7 Formula Flashcards
(13 cards)
What are the 3 measures for profitability?
Operating profit margin, Gross profit margin and Return on capital employed.
Formula for Operating margin?
Operating profit / Revenue x 100
Formula for Gross profit margin?
Gross profit / Revenue x 100
Formula for Return on capital employed?
Operating profit / Capital employed x 100
Formula Gearing?
Long term liabilities / (Total Equity + Long term liabilities) x 100
Formula for Current ratio?
Current assets / Current liabilities
What 3 measures have we used for efficiency?
Payable day, Receivable days and inventory turnover
Formula for Receivable days?
Receivables / Revenue x 365
Formula for Payable days?
Payable / cost of sales x 365
Formula for inventor turnover?
Cost of sales / Average inventory
Formulas for Marketing?
Market share, Market growth and sales Growth
Formulas for Operations?
Unit cost and Capacity utilisation
Formulas for HR?
Labour turnover, Absenteeism and labour productivity.
