fish test formulae Flashcards
break even point
Fixed cost - Contribution
contribution
selling price - variable cost
margin of safety
forecasted sales - break even point
working capital
current assets - current liabilities
Net assets
(non current assets + current assets) - (non current liabilities + current liabilities)
capital employed =
= net assets
gross profit
revenue - cost of sales
operating profit
gross profit - overheads
net profit
operating profit - tax and interest
liquidity
current assets - current liabilities
gearing
non current liabilities / total equity + non current liabilities
Return on capital employed
operating profit before tax / total equity + non current liabilities x 100
(always measured as a percentage)
inventory (stock) turnover
cost of goods sold / average inventory held
measure as a NUMBER
Receivable (debtor) days
receivables (debtors) / revenue x 365
measured in DAYS
payable (creditors) days
payables / cost of sales x 365
measured in DAYS
