commerce formulas Flashcards
- Yearly Deprecations
(Purchase Value – Residual Value)/ Economical life
- Break-even point
Fixed costs / (Sales price per unit – Variable cost)
- Total fall of Value
Purchase Value- Residual Value
- Depreciation %
(Yearly depreciation / Purchasing Value) x 100%
- Net Working Capital
Current Assets – Current liabilities
- Current Ratio
Current Assets/ Current Liabilities
- Quick Ratio
(Current Assets- Inventories)/ Current Liabilities
- Solvability
Owner’s Equity/ Total Assets
- Debt Ratio
Total Liabilities/ Total Assets
- Return On Assets with earnings
(Earnings before Interest and Taxes/ Average Total Assets) x 100%
- Return On Assets with operating income
(Operating Income/ Average Total Assets) x 100%
- Return on Equity
(Net Profit (income)/ Average Owner’s Equity) x 100%
- Average Cost of Total Debt
(Interest/ Average Debts) x 100%
- Total Assets Turnover Ratio
Total Revenue/ Average Total Costs
- Inventory Turnover Rate w costs of good sold
Costs of Goods Sold/ Average Inventory Level
Inventory Turnover Rate w units sold
Units Sold/ Average Inventory Level in Units
Inventory Turnover Rate w revenue
Revenue/ Average Selling Value of the Inventory
Profit Margin Ratio
(Operating Profit/ Net Revenue) x 100%
