FA formulas

Question 1

Gross Profit Margin

Answer 1

(Gross Profit/Sales)x100

Question 2

Operating Profit Margin

Answer 2

(Operating Profit/Sales)x100

Question 3

Net Profit Margin

Answer 3

(Net Profit after Interest and Tax/Sales)x100

Question 4

Return on Capital employed

Answer 4

(Profit before Interest and Tax/Shareholders Funds and Loans)x100

Question 5

Return on Equity

Answer 5

(Profit after Interest and Tax/Shareholders Funds)x100

Question 6

Return on Assets

Answer 6

(Profit after Interest and Tax/Total Assets)x100

Question 7

Days Receivable

Answer 7

(Accounts Receivable/Sales)x365

Question 8

Days Inventory

Answer 8

(Inventory/Cost of Sales)x365

Question 9

Days Payable

Answer 9

(Accounts Payable/Cost of Sales)x365

Question 10

Receivables Turnover

Answer 10

Sales/Average Accounts Receivable

Question 11

Inventory Turnover

Answer 11

Cost of Sales/Average Inventory

Question 12

Payables Turnover

Answer 12

Cost of Sales/Average Accounts Payable

Question 13

Gearing Ratio

Answer 13

Long-Term Debt/(Long-Term Debt+Equity)

Question 14

Debt Equity Ratio

Answer 14

Long-Term Debt/Shareholders Equity

Question 15

Full Gearing Ratio

Answer 15

Total Debt/(Total Debt+Equity)

Question 16

Interest Cover

Answer 16

Profit before Interest and Tax/Interest Paid

Question 17

Total Asset Turnover

Answer 17

Sales/Average Total Assets

Question 18

Equity Multiplier

Answer 18

Average Total Assets/Average Shareholders Equity

Question 19

Current Ratio

Answer 19

Current Assets/Current Liabilities

Question 20

Quick Ratio

Answer 20

(Current Assets-Inventory)/Current Liabilities

Question 21

Dividend Payout Ratio

Answer 21

Dividends Paid/Net Profit after Interest and Tax

Question 22

Dividend Cover

Answer 22

Net Profit after Interest and Tax/Dividends Paid