formulas Flashcards
profit margin
profit /
revenue (x 100)
Return on capital employed (ROCE)
operating profit /
Capital employed ( x 100)
Capital employed
Equity + long term debt
Inventory turnover
cost of sales/
inventory
Recieveable days
Trade recieveables/revenue (x365)
Payables days
Trade payables / cost of sales (x 365)
Current ratio
Current assests / current liabilities :1
Gearing ratio
Non current liabilities / capital employed (x 100)
working capital
current assets - current liabilities
Average rate of return
Net return of project or number of years/ initial cost of project x 100
Labour cost per unit
Labour costs/unit of output
Employee cost as a percentage of turnover
Employee costs/sales turnover x 100
Employee retention (%) for a time period
Number of staff leaving during year/average number of staff employed by business during the year x 100
Labour turnover (%)
Number of staff leaving during the year/average number of staff employed during the year x 100
Profit for year margin (%)
Profit for year/sales revenue x 100
Margin of safety
Actual level of output - break even level of output
Total contribution
Contribution per unit x units produced or sold
Total contribution
Total revenue - variable costs
Contribution per unit
Selling price - variable costs per unit
Variance
Actual - budgeted
Profit for the year
Operating profit + other profit - net finance costs - tax
Gross profit
Sales revenue - cost of sales
Operating profit
Sales revenue - cost of sales - operating costs
Return on investment
Return on investment/cost of investment x 100
