# Formulas 1 Flashcards

Annual Percentage Return (APR)

Effective Interest Rate * # of periods in year

Asset Turnover

Sales / Total Assets

Breakeven Point - Units

Fixed Costs / Contribution Margin

Breakeven Point - Dollars

Fixed Costs / Contribution Margin Ratio

Current Ratio

Current Assets / Current Liabilities

Contribution Margin

Revenue - Variable Costs

or

Sales - Variable Costs

Cost of Goods Sold

Beg. Inv + Inv Purchases - End Inv

Dividend Payout Ratio

cash dividend per share / earnings per share

Effective Interest Rate

(principle*rate*time) / principle

Gross Margin

Revenue - CGS (or gross profit)

Inventory Conversion Period

Average Inventory / Cost of sales per day

Avg Inv = (Beg Inv + End Inv) / 2

*Make sure to use 365 days per year unless stated otherwise.

Inventory Turnover

CGS / Average Inv

Marginal Propensity to Consume

Change in Spending / Change in disposable Income

Marginal Propensity to Save

Change in Savings / Change in Income

Number of Days Sales in Inventory

Days in year (360 or 365) / Inventory Turnover