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
Current Ratio
Current Assets / Current Liabilities
Inventory Turnover Ratio
Cost of Goods Sold / Inventory
Receivable Turnover Ratio
Revenue / Accounts Receivable
Assets Turnover Ratio
Revenue / Total Assets
Payable Turnover Ratio
Cost of Goods Sold / Accounts Payable
Days Sales of Inventory
Inventory / Cost of Goods Sold x 365
Days Sales Outstanding
Account Receivable / Revenue x 365
Days Payables Outstanding
Account Payables / Cost of Goods Sold x 365
Debt to Assets Ratio
Total Liabilities / Total Assets
Debt to Equity Ratio
Total Liabilities / Total Equity
Interest Coverage
Operating Profit / Interest Expense
Cash Flow
Cash inflow / Cash outflow
Break-even
Fix Cost / Contribution per unit
Contribution per unit
Selling price per unit - Variable cost per unit
- Contribution = Selling Price - Variable Cost
Margin of safety
Total Output - Break-even level of output
Gearing ratio
Total debt/total equity
