Financial Statement Analysis Flashcards
1
Q
What is the formula of gross profit margin?
A
Gross Profit/Net Sales revenue x 100
2
Q
What is the formula for mark-up on cost?
A
Gross Profit/Cost of sales x 100
3
Q
What is the formula for profit margin?
A
Profit/Net Sales revenue x 100
4
Q
What is the formula for return on equity?
A
Profit/Average Equity x 100
5
Q
What is the formula for rate of inventory turnover?
A
Cost of sales/Average inventory
6
Q
What is the formula for day sales in inventory?
A
Average inventory/Cost of sales x 365 days
7
Q
What is the formula for rate of trade receivables?
A
Net credit sales revenue/Average net trade receivables
8
Q
What is the formula for trade receivables collection period?
A
Average net trade receivables/Net credit sales revenue x 365 days
