Finance Formulas Flashcards
1
Q
Revenue
A
Price x Quantity
2
Q
Cost of Sales
A
Opening inventory (Stock) + Purchases - Closing inventory
3
Q
Gross Profit
A
Revenue - Cost of sales
4
Q
Net Profit (Operating profit or Profit from operations)
A
Gross profit - expenses
5
Q
Profit before Tax
A
Operating Profit - Interest (loans)
6
Q
Profit for the year
A
Profit before tax - tax
7
Q
Gross profit margin
A
Gross profit / sales revenue x 100
8
Q
Operating profit margin
A
Operating profit / sales revenue x 100
9
Q
ROCE (return on capital employed)
A
Net profit / capital employed x 100
10
Q
Net book value
A
Asset worth - depreciation
11
Q
CR (current ratio)
A
Current assets / current liabilities
12
Q
AR (Acid ratio)
A
(current assets - stock) / current liabilities
13
Q
A
