Formula Flashcards
Gross Profit Margin
Gross profit / turnover x 100
Net Profit Margin
Net profit / turnover x100
Acid test ratio
Current assets - stock / current liabilities
Gearing
Long term liabilities / capital employed
Current Ratio
Current assets / current liabilities
Average rate of return
Total net profit / number of years
/ initial cost X100
ROCE
Net profit before tax / shareholders funds + long term liabilities
Return (net profit)
/ fixed + current assets x100
Labour cost per unit
Labour costs / units of output
Break even output
Fixed costs / contribution per unit x100
Contribution per unit
Selling price - variable variable cost (per unit)
Total contribution
Total revenue - total variable costs
Return on investment
Return on investment / cost of the investment x 100
Capacity utilisation %
Actual output in a given time period / max possible output in a given time period x 100
Price elasticity of demand
% change in quantity demanded /
% change in price
Capital Employed
Shareholders funds + long term liabilities
