FS Analysis Formula Flashcards
Gross profit margin(%)
Gross profit / Net Sales Rev. X 100
Mark up on cost (%)
Gross profit / cost of sales X 100
Profit margin(%)
Profit for the year / Net sales Rev.
X 100
Return on equity(%)
Profit for the period / Avg equity X 100
Avg equity=
(Beginning Eq.+ Ending Eq.) / 2
Working Capital ($)
Total Current assets - Total Current liabilities
Current ratio (Working capital ratio)
Total Current Assets / Total Current Liabilities
Quick ratio
Total Current Assets - Prepayments - Inventory / Total Current Liabilities
Rate of inventory turnover (times)
Cost of sales / Avg Inventory
Day sales in inventory (days)
Avg Inventory / Cost of sales X 365 days
Rate of Trade Receivables turnovers (times)
Net credit sales/service fee Revenue / Avg net Trade Receivables
Trade receivables collection period (days)
Avg net Trade Receivables / Net credit sales/service fee revenue X 365 days
