Calculation Questions Flashcards
Sales revenue (or sales turnover)
the total value of sales made during the trading period = selling price x quantity sold
gross profit margin (%)
gross profit/ sales revenue x 100
net profit margin (%)
net profit/ sales revenue x 100
current ratio
current assets/ current liabilities
acid-test ratio
liquid assets/ current liabilities
liquid assets
current assets - inventories (stocks) = liquid assets
return on capital employed (%)
net or operating profit/ capital employed x 100
Liquidity ratios
- current ratio
- acid-test ratio
gearing ratio (%)
long-term loans/ capital employed x100
rate of capacity utilisation
current output level/ max output level x 100
capital productivity
output/ capital employed
labour productivity
total output in a given time period/ total workers employed
Free float
Total float
EST (next activity) - duration - EST
EST: Earliest Start Time
Total float
LFT - duration - EST
LFT: Latest Finished Time
Market Share (%)
firm’s sales in time period/ total market sales in time period x 100
price elasticity of demand (PED)
percentage change in quantity demanded/ percentage change in price
income elasticity of demand
% change in demand for the product/ % change in consumer incomes
promotional elasticity of demand
% change in demand for the product/ % change in promotional spending
cross elasticity of demand
% change in demand for good A/ % change in price of good B
absenteeism (%)
no. of staff absent/ total no. of staff x 100
labour turnover
number of staff leaving in 1 year/ average number of staff employed x 100
dividend yield ratio (%)
dividend per share x 100 / current share price
dividend per share
total annual dividends / total number of issued shares
dividend cover ratio
profit after tax and interest / annual dividends
price/ earning ratio
current share price/ earnings per share
earnings per share
profit after tax/ total number of shares
inventory (stock) turnover ratio
cost of goods sold / value of inventories
days’ sales in receivables ratio
accounts receivable x 365 / sales turnover
