Formulas Flashcards

1
Q

Calculate net profit margin

A

(net profit / revenue) x 100

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2
Q

Calculate return on capital employed

A

(net profit / capital employed) x 100

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3
Q

Calculate gross profit margin

A

(gross profit / revenue) x 100

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4
Q

Calculate current ratio

A

current assets / current liabilities

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5
Q

Calculate net current assets

A

current assets - current liabilities

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6
Q

Calculate net profit

A

gross profit - other expenses (sometimes + other income streams)

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7
Q

Calculate sales revenue

A

quantity sold x price

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8
Q

Calculate trade payable days

A

(trade payables / credit purchases) x 365

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9
Q

Calculate trade receivable days

A

(trade receivables / credit sales) x 365

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10
Q

Calculate average inventory

A

(opening inventory + closing inventory) / 2

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11
Q

Calculate depreciation using the straight line method

A

original price - (depreciation amount x number of years)

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12
Q

Calculate depreciation using the reducing balance method

A

current value x depreciation rate (% per year) x number of years

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13
Q

Calculate price elasticity of demand

A

% change in quantity demanded / % change in price

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14
Q

Calculate variable costs

A

variable cost per unit x number of units sold

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15
Q

Calculate total costs

A

fixed costs + variable costs

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16
Q

Calculate income elasticity of demand

A

% change in quantity demanded / % change in income

17
Q

Calculate net cash flow

A

cash inflow - cash outflow

18
Q

Calculate break even output

A

fixed costs / contribution per unit

19
Q

Calculate margin of safety

A

actual output - break even output

20
Q

Calculate budget variance

A

budget amount - actual amount

21
Q

Calculate capital employed

A

opening capital + net profit - drawings

22
Q

Calculate labour productivity

A

output / number of employees

23
Q

Calculate labour turnover (% of employees leaving)

A

(number of employees leaving / total number of employees) x 100

24
Q

Calculate break even point

A

fixed costs / contribution per unit

25
Calculate market share %
(sales of the business / total sales in market) x 100
26
Calculate market capitalisation
number of issued shares x current share price
27
Calculate return on capital employed
(return on investment / cost of investment) x 100
28
Calculate profit for year margin in %
(profit for year / sales revenue) x 100
29
Define mark-up ratio
The ratio of gross profit to sales price
30
Define inventory turnover
The rate that inventory stock is sold or used after coming into possession of the company
31
1) Define liquid capital 2) Define liquid capital ratio
1) Assets that can be converted into cash with little impact on overall value 2) How much of your capital is liquid?
32
Calculate contribution per unit
selling price - variable costs
33
Calculate gross profit
sales revenue - cost of goods sold
34
Calculate inventory turnover ratio (in days)
(average inventory / cost of goods sold) x 365
35
Calculate liquid capital ratio
(current assets - current inventory) / current liabilities
36
Calculate cost of goods sold
opening inventory + purchases - closing inventory
37
Calculate mark-up ratio
(gross profit / cost of sales) x 100
38
If you're asked to calculate something's "margin", what is the process?
( ______ / revenue) x 100