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