Finance and Business Flashcards
Operating Profit Margin =
Operating Profit\Net sales
Net Profit Margin =
Net Income/Net Sales
Gross Profit Margin=
Gross Profit/Net Sales
Return on Assets (ROA)=
Net Income/Total Assets
Return on Equity (ROE)=
Net Profit/Equity
Return on Capital Employed
EBIT/Current Assets-Current Liabilities
Average Inventory Turnover=
Sales/Avg Inventory
Current Ratio=
Current Assets/Current Liabilities
Quick Ratio (acid test)=
Cash+Cash equivalents=receivables/Current Liabilities
Charge Back
accounting practice that allows facility manager to apply the expense for goods and services where they are actually used.
Time Value Money
A dollar is worth more today then a dollar received tomorrow because that dollar can be invested today and earn interest
Future Value=
present value x future value interest factor
Present Value =
Future Value x Present Value Interest Factor
GAAP
Generally Accepted Accounting Principals
