Formulas Flashcards
Net profit margin
Operating profit
—————— x 100
Revenue
Operating profit
Revenue-(costs of goods sold, labour, and other day to day expenses incurred in the normal course of business)
Earnings per share
Number of shares
Current assets
Stock+receivables+cash and other cash equivalents
Working capital/net current assets/current capital
Current assets-current liabilities
Net assets
(current liabilities -non current liabilities)
Assets employed
Working capital + non current assets
Capital employed
Total equity + non current assets
Total equity
Assets - liabilities
Annual depreciation
(Residual value/ expected lifetime)
Gross profit
Revenue- cost of sales
Payback period
How many years till payback (the negative number before payback divide by year after payback) x12
Annual return
Total profit/lifetime of return (years)
———————— x100
Initial investment
Average rate of return
Initial investment
Then this answer / initial investment again (x100) =%
Gross profit margin
Gross profit
————– X100
Revenue
