Formulas Flashcards
(27 cards)
Gross Profit Margin formula
Gross Profit/ Sales Revenue
Operating Profit Margin formula
Operating Profit/ Sales Revenue
Net Profit Margin formula
Net Profit/ Sales Revenue
Return on Capital Employed formula
Operating Profit/ Capital Employed (NCL + Equity)
Current Ratio formula
Current Assets/ Current Liabilities
Quick Ratio/ Acid Test formula
(Current Assets - Inventory)/ Current Liabilities
Debtors/ Accounts Receivable Days formula
Debtors/ Sales (or credit sales) X 365 Days
Creditors/ Accounts Payable Days formula
Creditors/ COS (or Credit Purchases) X 365 days
Inventory Days formula
Inventory/ COS (or Credit Purchases) X 365 days
Gearing (Financial) formula
NCL/ (NCL + Equity)
Interest Cover formula
Operating Profit/ Interest Expense
Earnings before Interest, Tax, Depreciation and Amortisation (EBITDA) formula
Net Profit + Tax + Depreciation + Amortisation
Contribution Per Unit formula
SP-VC or Total Revenue - COS/ no of units
Break even formula
Fixed Costs/ Contribution per unit
Target Profit in units formula
(Fixed costs + Target Profit)/ Contribution per unit
Material Price Variance formula
Standard Price (per KG) - Actual Price (per KG) X Actual Quantity used in KG
Material Usage Variance formulas
Standard Quantity used (in KG) - Actual Quantity used (in KG) X Standard price of material (per KG)
Labour Rate Variance formula
Standard Rate of Pay - Actual Rate of Pay X Actual Hours used
Labour Efficiency Variance
Standard Hours - Actual Hours x Standard Rate of pay
WACC formula
(We x Ke) + (Wd x Kd)
Economic Order Quantity formula
Square root of 2AO/C
Where A = Annual Demand, O = Order Cost and C = Holding Cost
Cash Conversion Cycle formula
AR Days + Inventory Days - Payable Days
Contribution point in sales revenue formula
Fixed cost/ Contribution Margin ratio
Contribution Margin Ratio = (selling price per unit - variable cost per unit)/ selling price per unit
Margin of safety in units formula
Actual sales (units) - Break-even sales (units)
