component 2 equations Flashcards
acid test ratio
current assets - stock / current liabilities :1
gearing ratio
long term liabilities/ capital employed x100
current ratio
current assets / current liabilities :1
net profit margin
net profit/ sales revenue x 100
gross profit margin
gross profit / sales revenue x100
ROCE
net profit/ capital employed x100
payback period
income needed in period/ contribution per month
average rate of return
average annual return/ initial output x100
working capital
currents assets - current liabilities
Float time CPA
LFT - duration - EST
capital employed
LT liabilities + shareholders capital
depreciation
historical cost - residual value / useful life of asset
long term liabilities
capital employed - shareholders fund
capital employed
long term liabilities + shareholders capital