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Business studies (A levels) > Ratios > Flashcards

Ratios Flashcards

1
Q

How to calculate net profit margin?

A

Net profit
…………….. x 100
Total revenue

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2
Q

How to calculate total revenue?

A

Selling price x Quantity sold

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3
Q

How to calculate total cost?

A

Fixed cost + variable cost

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4
Q

How to calculate current ration

A

Current assets
…………………….
Current liabilities

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5
Q

How to calculate break even?

A

Selling - variable
Price Cost

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6
Q

How to calculate gross profit margin

A

Gross profit
….……………. x100
Total revenue

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7
Q

How to calculate ARR

A
  1. Total net cash flow
  2. Profit= Investment - net cash flow
  3. Annual Profit = profit/years
  4. ARR= annual profit/ investment x 100
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8
Q

How to calculate pay back period?

A

Additional net cash inflows/ Cash flow in that year x 12

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9
Q

Annual Forecasted net cash flow

A

Is forecast cash inflows - forecast cash outflows

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10
Q

Acid test ratio how to calculate

A

Current liabilities

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11
Q

How to calculate liquid assets

A

Current assets—stocks

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12
Q

how to calculate Return on capital employed?

A

net or operation profit/capital employed x100

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13
Q

how to calculate inventory turnover ratio?

A

cost of goods sold/ value of inventories

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14
Q

how to calculate dividend yield ratio

A

Dividend per share/current share price x100

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15
Q

how to calculate dividend per share

A

total annual dividends / total number of issued shares

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16
Q

Days’ sales in receivables ratio

A

Accounts receivable/ sales turnover x 365

17
Q

Dividend cover ratio

A

profit after tax and interest/ annual dividends

18
Q

Price/earnings ratio

A

Current share price/earnings per share

19
Q

Earnings per share

A

profit after tax/total number of shares

20
Q

Gearing ration

A

long term loans/ capital employed x 100

21
Q

capacity utilisation

A

Current output / total capacity x 100

22
Q

total contribution

A

Contribution = Revenue - Variable costs

23
Q

promotional elasticity of demand

A

% change quantity demanded / % change advertising expenditure

24
Q

price elasticity of deman

A

% change quantity demanded / % change price

Business studies (A levels) (40 decks)

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