Financials Flashcards by Russell Tyler | Brainscape

Q

Return on Capital employed formula

A

(Turnover/capital employed)x100

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Q

Residual income formula

A

Controllable profits- notional interest

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Q

Break even point in sales

A

Fixed costs/ CS ratio

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Q

Quick ratio

A

Current assets- inventory/ current liabilities

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Q

Return on investment

A

(Controllable profits/cap employed)*100

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Q

Operating profit margin

A

Operating profit/ turnover x100

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Q

Current ratio

A

Current assets/current liabilities

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Q

Receivable period

A

Receivables/ credit sales x365

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Q

Payable periods

A

Payables/credit purchases x365

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Q

Gearing ratio

A

Debt/equity

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Q

Break even point revenue

A

Total fixed costs/ cs ratio

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Q

Inventory holding period

A

Inventory/ cost of sales x 365

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Q

Contribution sales ratio (cs)

A

Contribution/sales

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Q

Sales revenue for target profit

A

Fixed costs + target profit/ cs ratio

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Q

Margin of safety

A

Budget sales-BEP sales/ budget sales x100

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Q

Asset turnover

A

Turnover/ cap employed

Q

Quick ratio

A

Current ass-inventory/current lia

Q

Gross profit margin

A

Gross profit/ turnover x 100