MATHS Flashcards
Gross profit ratio/margin
gross profit / total revenue
x 100
Operatin profit ratio
operating profit / total revnue
x 100
Return on capital employed
Operating profit / capital employed
x 100
capital employed: equity & Non-cuurent liablilities
Current ratio
Current assets / current liabilities
current asstes –> trade recivables, bank cash, inventory
Current liablities –> trade payables, overdrafts
Acid Test ratio
Curent asstes - inventory / current liablities
trade recivables period
trade recivables / sales
x 365
Trade payables period
trade payables / purchases
x 365
Inventory turnover
direct costs / avarage inventory
direct costs = Cost of goods sold
Gearing ratio
debt capital / total capital employed
x 100
debt capital = non-current liablities
Earning per share
profit / num. of shares
num. of shares = share capital
Price earning ratio
share price / earning per share
Dividend per share
proposed dividend / num. of shares
Dividend yield
dividend per share / share price
x 100
Dividednd cover
Profit after tax / proposed dividend
Anual depreciation Provision
(Historical cost - scrap value) / Useful life of asset
Labour productivity
Output / No. of workers
Labour turnover
No. of workers that left / Total no. of workers
Absenteeism rate
No. of absent days by employees / No. of employee days
Promotional elasticity of demand(POED)
% change in demand / % change in promotional spending
Income elasticy of demand(YED)
% change in demand / % change in level of income
Cross elasticity of demand(CED)
% change in demand/
% change in price of another product
Price elasticity of demand(PED)
% Change in demand / % change in price
Total float time
Latest finishing time - Duration - Earliest starting time
Free float time
EST next activity - Duration - EST of this activity
Payback period
additional netcash flow needed
——————————————- x 12
Net cash flow for the year
Accounting/Avarage rate of return
Annual avarage profit
—————————— x 100
Initial investment
Annual avarage profit
(Total net cashflows - initial investment) /
No. of years of investment
