Formulas Flashcards
Cash cycle/working capital cycle
Inventory holding period + trade receivables collection period - trade payables payment period
Inventory holding period
Inventory /cost of sales X 365
Trade receivables collection period
Trade receivables / revenue X 365
Trade payables payment period
Trade payables / cost of sales X 365
Current ratio
Current assets / current liabilities
Quick ratio (or acid test ratio)
(Current assets - inventory) / current liabilities
Return on capital employed
Operating profit / capital employed X 100
Return on shareholders funds
Profit after tax / total equity X 100
Operating profit margin
Operating profit / revenue X 100
Gearing
Total debt / (total debt + equity) X 100
(Total debt is also non current liabilities)
Interest cover
Operating profit / interest X 100
Mark up profit is calculated as a % of _____________
Cost
Margin profit is calculated as a % of _____________
The selling price
Average monthly sales change
(Sales in final month - sales in first month) / (number of months - 1)
Linear regression
Y = mx + c
***** need to do a key to say what ecstasy, and why actually mean?
