Formulae to learn 2 Flashcards
1
Q
Profit for the year margin / net profit margin %
A
Net profit / revenue x 100
2
Q
Current ratio
A
Current assets / current liabilities
3
Q
Acid test ratio
A
(current assets - inventories) / current liabilities
4
Q
Capital employed
A
Non current liabilities + total equity
5
Q
Gearing
A
Non current liabilities / capital employed x 100
6
Q
Return on capital employed
A
Operating profit / capital employed x 100
7
Q
Working capital
A
Current assets - current liabilities
8
Q
Average rate of return ARR
A
Net return per annum / capital outlay x 100
9
Q
Net present value NPV
A
Present value - initial cost
10
Q
Payback period
A
Amount required / net cash flow in year x 12
11
Q
Capacity utilisation %
A
Current output / maximum possible output x 100
