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Flashcards in Ratios Deck (24):
1

How to calculate net profit margin?

Net profit
................. x 100
Total revenue

2

How to calculate total revenue?

Selling price x Quantity sold

3

How to calculate total cost?

Fixed cost + variable cost

4

How to calculate current ration

Current assets
.........................
Current liabilities

5

How to calculate break even?

Fixed cost
-------------------------
Selling - variable
Price Cost

6

How to calculate gross profit margin

Gross profit
….…............. x100
Total revenue

7

How to calculate ARR

1. Total net cash flow
2. Profit= Investment - net cash flow
3. Annual Profit = profit/years
4. ARR= annual profit/ investment x 100

8

How to calculate pay back period?

Additional net cash inflows/ Cash flow in that year x 12

9

Annual Forecasted net cash flow

Is forecast cash inflows - forecast cash outflows

10

Acid test ratio how to calculate

Liquid assets
----------------
Current liabilities

11

How to calculate liquid assets

Current assets—stocks

12

how to calculate Return on capital employed?

net or operation profit/capital employed x100

13

how to calculate inventory turnover ratio?

cost of goods sold/ value of inventories

14

how to calculate dividend yield ratio

Dividend per share/current share price x100

15

how to calculate dividend per share

total annual dividends / total number of issued shares

16

Days' sales in receivables ratio

Accounts receivable/ sales turnover x 365

17

Dividend cover ratio

profit after tax and interest/ annual dividends

18

Price/earnings ratio

Current share price/earnings per share

19

Earnings per share

profit after tax/total number of shares

20

Gearing ration

long term loans/ capital employed x 100

21

capacity utilisation

Current output / total capacity x 100

22

total contribution

Contribution = Revenue - Variable costs

23

promotional elasticity of demand

% change quantity demanded / % change advertising expenditure

24

price elasticity of deman

% change quantity demanded / % change price