Formulas & Ratios Flashcards
Working Capital
Current Assets - Current Liabilities
Current Ratio
Current Assets / Current Liabilities
Liquid Capital Ratio
(Current Assets - Inventory) / Current Liabilities
Inventory Turnover
(Average Inventory / Cost of Sales) * 365
Trade Payable Days
(Trade Payables / Credit Purchases) * 365
Trade Receivable Days
(Trade Receivables / Credit Sales) * 365
Gross Profit Margin
(Gross Profit / Revenue) * 100
Net Profit Margin
(Net Profit / Revenue) * 100
Mark Up
(Gross Profit / Revenue) * 365
ROCE
(Net Profit Before Tax & Interest / Capital Employed) * 100
Total Revenue
Number Sold * Price Per Unit
Total Contribution
Sales Revenue - Total Variable Cost
Contribution Per Unit
Price Per Unit - Variable Cost Per Unit
Average Inventory
(Opening Inventory + Closing Inventory) / 2
