Formulas Flashcards
1
Q
Gross profit margin
A
gross profit/ revenue
2
Q
Net profit margin
A
net profit/ revenue
3
Q
Mark up
A
(selling price - COS) / COS
4
Q
Return on capital employed
A
operating profit/ capital employed
5
Q
Current ratio
A
current assets/ current liabilities
6
Q
Stock turnover ratio
A
COS / average stock held
7
Q
Debtor days
A
trade debtors/ revenue x 365 days
8
Q
Creditor days
A
trade payables / COS x 365
9
Q
Gearing ratio
A
debt/ equity or debt/(debt + equity)
10
Q
Interest cover
A
EBIT/ interest
11
Q
ROCE/ROI
A
(profit x 100%)/ average capital employed during the period
12
Q
Residual income (RI)
A
divisional profit - (net asset of division x required rate)
