BEC RATIOS Flashcards
contribution margin (units)
sales - VC (if for units make it units)
contribution margin ratio
sales - VC/ total sales
VC ratio
variable cost/sales
BE units
fixed expenses/unit sales - unit VC
BE $
fixed expenses/ sales - vc
$ to achieve desired profit
(fixed cost + desired net income)/ contribution margin ratio (sales-VC/sales)
units to achieve desired profit
(fixed cost + desired net income)/ unit contribution margin ratio (unit sales-unit VC/unit sales)
return on equity
net income/SH equity
return on asset
net income/total assets
net working capital
current assets - current liabilities
current ratio
current assets/ current liabilities
acid test or quick ratio
cash + marketable securities + net receivables/ current liabilities
debt to equity
total liabilities/ owner equity
time interest earned
income before taxes and interest charges/interest charges
AR t/o
net credit sales/avg AR
of says in AR
360/ (sales-AR)
inventory t/o
COGS/avg inventory
return on assets
net income+int exp/avg assets
days in avg inventory
360/(COGS/avg inv)
length of operating cycle
days sales in avg receivables
book value per pref./common share
common SH/# of SH
return on equity
net income (-pref if solving for common)/ avg SH equity
earning per share
net income - pref div/avg # of shares outstanding
price earnings or div earnings per share
price per share/earnings per share
Inventory Conversion Period
Average Inventory / (COGS / 365)
Receivables Collection Period
Ending A/R / (Net Sales / 365)
Payables Deferral Period
Average Payables / (COGS/365)
Asset Turnover Ratio
Sales / Average Assets
Gross Margin %
Gross Margin = Gross Profit / Net Sales
Period vs. Product Costs
Net Sales - product cost =gross margin -period cost =operating income
