formulas Flashcards
return on capital employed
(net profit/ capital employed) x 100
mark up
(gross profit/ cost of sales) x 100
gross profit margin
(gross profit/ revenue) x 100
current ratio
current assets/ current liabilities
trade payable days
(trade payables/ credit purchases) x 365
inventory turnover
(average inventory/ cot of sales) x 365
trade receivable days
(trade receivables/ credit sales) x 365
liquid capital ratio (acid test)
(current assets - inventory)/ current liabilities
net profit margin
(net profit/ revenue) x 100
average inventory
(opening inventory + closing inventory)/ 2
total contribution
sales revenue- total variable costs
net current assets
current assets - current liabilities
net assets
non- current assets + net current assets - non-current liabilities
balance sheet (what needs to balance?)
net assets = capital employed
break-even
total fixed costs/ unit contribution
