Formulas 😠Flashcards
How do you calculate assets?
Capital plus liabilities
How do you calculate working capital?
Current assets minus current liabilities
How do you calculate ROCE (return on capital employed)?
Profit before interest over capital employed multiplied by 100
How do you calculate net profit percentage?
Net profit over sales (revenue) multiplied by 100
How do you calculate gross profit percentage?
Gross profit over sales (revenue) multiplied by 100
How do you calculate inventory/stock turnover?
Cost of sales (costs of goods sold) over average inventory
How do you calculate current ratio
Current assets over current liabilities
How do you calculate the acid test ratio?
Current assets minus inventory over current liabilities
How do you calculate trade receivables to sales
Accounts receivables over credit sales for the year multiplied by 365
How do you calculate trade purchases to purchases?
Trade purchases over credit purchases for the year ended multiplied by 365
How do you calculate the rate of inventory turnover (inventory turnover)?
Costs of goods sold(cost of sales) over average inventory
How do you calculate depreciation using the straight line method?
Cost minus disposal value over number of years
