Formulas Flashcards
Gross Profit Margin
GPM = Gross Profit / Revenue x 100
Gross Profit
GP = Revenue - Cost of Sales
Profit Margin
PM = Profit / Revenue x 100
Operating Profit Margin
OPM = Operating Profit / Revenue x 100
Operating Profit
Gross Profit - Operating Expenses
Net Profit Margin
Net Profit / Revenue x 100
Net Profit
Operating Profit - Interest Expenses - Tax Expenses
Return on Assets
Net Profit / Total Assets x 100
or
Net Profit / Average Total Assets x 100
(Average Total Assets = closing total asset + opening total assets x 2)
Assets Turnover Ration
Revenue / Total Assets
Assets
Assets = Liabilities + Equity
Return on Assets
Net Profit / Total Assets
Return on Equity
Net Profit / Total Equity
Return on Capital Employed
Net Profit / Capital Employed
or
Operating Profit / Capital Employed
Capital Employed
Total Assets - Current Liabilities
Liquidity Ratio
Liquid Assets / Current Liabilities
