Formulas Flashcards
Break Even =
Fixed Costs/Cont. per unit
Cont. per unit =
Selling price - VC per unit
Total Contribution =
Cont. per unit x no of units
Profit =
Contribution - FC
MOS =
Actual output - BE Output
Expected value =
Probability x Outcome
Net Gain =
EV =- Initial Cost
Value added =
Selling price - Raw materials
Inventory Turnover =
cost of sales/cost of average goods held
Payable days =
Payables/cos x 365
Receivable days =
Receivables/sales rev x 365
Current ratio =
Current assets/current liabilities
Gearing ratio =
Non current liabilities/total equity + non current liabilities x 100
ROCE =
Operating Profit/Total equity + Non current liabilities x 100
PFTYM
PFTY/Sales Rev x 100
GPM
GProf/Sales Rev x 100
OPM
OpProf/Sales Rev x 100
Capital employed =
total equity + non current liabilities
Total equity =
Share Capital + Reserves
Net assets =
Assets - Liabilities
Ideal figure for current ratio is
1.5-2 :1
Different values of gearing ratio
Below 25 is low
Above 50 is high
What figure do you want for GPM, OPM, PFTYM, ROCE?
Highest possible
