Formuler Flashcards
Revenue
Revenue = Price x Quantity
Total Costs
Total Costs = Fixed Costs + Variable Costs
Profit
Profit = Total Revenue - Total Costs
gross profit margin
Gross Profit Margin = (Gross Profit / Revenue) x 100
net profit margin
Net Profit Margin = (Net Profit / Revenue) x 100
What is the formula for calculating return on capital employed (ROCE)?
ROCE = (Operating Profit / Capital Employed) x 100
Current Ratio
Current Ratio = Current Assets / Current Liabilities
Acid Test Ratio
Acid Test Ratio = (Current Assets - Inventory) / Current Liabilities
What is the formula for calculating inventory turnover ratio?
Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory
What is the formula for calculating debt to equity ratio?
Debt to Equity Ratio = Total Debt / Total Equity
What is the formula for calculating earnings per share (EPS)?
EPS = (Net Profit - Preference Dividends) / Number of Ordinary Shares
What is the formula for calculating price earnings (P/E) ratio?
P/E Ratio = Market Price per Share / Earnings per Share
What is the formula for calculating dividend yield?
Dividend Yield = (Dividend per Share / Market Price per Share) x 100
payback period
Payback Period = Initial Investment / Annual Cash Inflows
What is the formula for calculating average rate of return (ARR)?
ARR = (Average Annual Profit / Initial Investment) x 100
What is the formula for calculating net present value (NPV)?
NPV = Present Value of Cash Inflows - Present Value of Cash Outflows
What is the formula for calculating break-even point in units?
Break-even Point in Units = Fixed Costs / (Selling Price per Unit - Variable Cost per Unit)
What is the formula for calculating contribution to sales ratio?
Contribution to Sales Ratio = (Contribution / Sales) x 100
Margin of Safety
Margin of Safety = Actual Sales - Break-even Sales
What is the formula for calculating labour productivity?
Labour Productivity = Output / Number of Employees
What is the formula for calculating absenteeism rate?
Absenteeism Rate = (Number of Days Lost due to Absence / Total Number of Days Worked) x 100
What is the formula for calculating labour turnover rate?
Labour Turnover Rate = (Number of Employees Leaving / Average Number of Employees) x 100
Value Market Share
(Sales revenue/Total market sales revenue) x 100
Volume Market Share
(Firm’s units sold/Total Market Units sold) x 100
