FA formulas Flashcards
Gross Profit Margin
(Gross Profit/Sales)x100
Operating Profit Margin
(Operating Profit/Sales)x100
Net Profit Margin
(Net Profit after Interest and Tax/Sales)x100
Return on Capital employed
(Profit before Interest and Tax/Shareholders Funds and Loans)x100
Return on Equity
(Profit after Interest and Tax/Shareholders Funds)x100
Return on Assets
(Profit after Interest and Tax/Total Assets)x100
Days Receivable
(Accounts Receivable/Sales)x365
Days Inventory
(Inventory/Cost of Sales)x365
Days Payable
(Accounts Payable/Cost of Sales)x365
Receivables Turnover
Sales/Average Accounts Receivable
Inventory Turnover
Cost of Sales/Average Inventory
Payables Turnover
Cost of Sales/Average Accounts Payable
Gearing Ratio
Long-Term Debt/(Long-Term Debt+Equity)
Debt Equity Ratio
Long-Term Debt/Shareholders Equity
Full Gearing Ratio
Total Debt/(Total Debt+Equity)
Interest Cover
Profit before Interest and Tax/Interest Paid
Total Asset Turnover
Sales/Average Total Assets
Equity Multiplier
Average Total Assets/Average Shareholders Equity
Current Ratio
Current Assets/Current Liabilities
Quick Ratio
(Current Assets-Inventory)/Current Liabilities
Dividend Payout Ratio
Dividends Paid/Net Profit after Interest and Tax
Dividend Cover
Net Profit after Interest and Tax/Dividends Paid
