PAPER 2 FORMULAS Flashcards
1
Q
Equity:
A
Equity = Total Assets - Total Liabilities
2
Q
Profit Margin:
A
Profit Margin = (Net Profit / Sales Revenue) × 100
3
Q
Current Ratio:
A
Current Ratio = Current Assets / Current Liabilities
4
Q
Contribution per Unit:
A
Contribution per Unit = Selling Price per Unit - Variable Cost per Unit
5
Q
Total Liabilities:
A
Total Liabilities = Total Assets - Equity
6
Q
ROCE:
A
ROCE = (PBIT / Capital Employed) × 100
7
Q
Market Share:
A
Market Share = (Company’s Sales / Total Market Sales) × 100
8
Q
COS (Cost of Sales):
A
COS = Opening Stock + Purchases - Closing Stock
9
Q
Capacity Utilization Rate:
A
Capacity Utilization Rate = (Actual Output / Maximum Possible Output) × 100
