Excellence In Managing Operations Exam Flashcards
1
Q
ARR equation
A
Average annual profit \ average investment x 100%
2
Q
ARR where average investment
A
(Initial + scrap) \ 2
3
Q
Gross profit margin
A
Gross profit\sales revenue x 100
4
Q
Net profit margin
A
Profit before interest and tax x 100
5
Q
ROCE
A
profit before interest and tax \ capital employed x 100
6
Q
Capital employed =
A
Shareholders’ funds + long-term liabilities
7
Q
Asset turnover
A
Revenue/capital employed
8
Q
Current ratio
A
Current assets / current liabilities
9
Q
Acid test
A
Current assets - inventory /current liabilities
10
Q
Working capital
A
The different between current assets and current liabilities
11
Q
Gearing
A
Long term liabilities /capital employed x 100
12
Q
Interest cover
A
PBIT/Interest payable
13
Q
Inventory days calc
A
Inventory\cost of sales
14
Q
Account receivable collection period
A
TR\credit sales x 365
