formulas Flashcards
gross profit margin
(gross profit/sales revenue) x 100
profit margin
(profit before interest and tax / sales revenue) x 100
return on capital employed
(profit before interest and tax / capital employed) x 100
current ratio
current assets / current liabilities
quick acid test ratio
(current assets - stock) / current liabilities
stock turnover ratio (number of times)
cost of sales / average stock
stock turnover (number of days)
(average stock / cost of sales) x 365
average stock
(opening stock - closing stock) / 2
debtor days
(debtors / sales revenue) x 365
creditor days
(creditors / cost of sales) x 365
gearing ratio
(non-current liabilities / capital employed) x 100
capital employed
non-current liabilities + equity
payback period
(amount left to pay / net cash flow in that year) x 12
average rate of return
[((total returns - capital costs) / years of use)) / capital costs] x 100
average annual return
total return over the lifetime of the investment / number of years
net present value
Epresent values of return - original cost
total revenue
price x quantity
contribution per unit
price - variable cost per unit
total contribution
contribution per unit x quantity sold
equity
assets - liabilities
retained profit
net profit after tax and interest - dividends
annual depreciation
(original cost - residual value) / expected life use of asset
cost of goods sold
opening stock + purchases - closing stock
gross profit
sales - cost of goods sold
