Formulas Flashcards
1
Q
Gross profit margin
A
(Gross profit ÷ revenue) × 100
2
Q
Mark-up
A
(Gross profit ÷ cost of sales) × 100
3
Q
Net profit
A
(Gross profit ÷ cost of sales) ×100
4
Q
Return on capital employed (ROCE)
A
(Net profit before interest and tax ÷ capital employed) ×100
5
Q
Current ratio
A
(Current assets ÷ Current liability)
6
Q
Liquid capital ratio
A
Current assets - inventory ÷ current liabilities
7
Q
Trade receivable days
A
(Trade receivables ÷ credit sales ) ×365
8
Q
Trade payable days
A
(Trade payables ÷ Credit purchase) ×365
9
Q
Inventory turnover
A
(Average inventory ÷ cost of sales) ×365
10
Q
Average inventory
A
(Opening inventory+ closing inventory ÷ 2)
11
Q
Total revenue
A
Quality of goods sold × selling price per unit
12
Q
Break even point
A
Total revenue = total cost
