Flashcards in Ratios Deck (24):
How to calculate net profit margin?
................. x 100
How to calculate total revenue?
Selling price x Quantity sold
How to calculate total cost?
Fixed cost + variable cost
How to calculate current ration
How to calculate break even?
Selling - variable
How to calculate gross profit margin
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
How to calculate pay back period?
Additional net cash inflows/ Cash flow in that year x 12
Annual Forecasted net cash flow
Is forecast cash inflows - forecast cash outflows
Acid test ratio how to calculate
How to calculate liquid assets
how to calculate Return on capital employed?
net or operation profit/capital employed x100
how to calculate inventory turnover ratio?
cost of goods sold/ value of inventories
how to calculate dividend yield ratio
Dividend per share/current share price x100
how to calculate dividend per share
total annual dividends / total number of issued shares
Days' sales in receivables ratio
Accounts receivable/ sales turnover x 365
Dividend cover ratio
profit after tax and interest/ annual dividends
Current share price/earnings per share
Earnings per share
profit after tax/total number of shares
long term loans/ capital employed x 100
Current output / total capacity x 100
Contribution = Revenue - Variable costs
promotional elasticity of demand
% change quantity demanded / % change advertising expenditure