POV Formulas Flashcards
1
Q
Gross Profit =
A
Revenue/Sales - COGS
2
Q
Operating Profit =
A
Gross Profit - Mktg - SG&A
3
Q
Pre-Tax Income =
A
Operating Profit - Interest (debt)
4
Q
Net Income =
A
Revenue/Sales - All Expenses
5
Q
Working Capital =
A
Current Assets - Current Liabilities
6
Q
Operating Margin =
A
operating profit / revenue
7
Q
Gross Profit Margin =
A
(gross profit / sales) *100
8
Q
Net Profit Margin =
A
(net income / sales) *100
9
Q
Return on Assets (ROA) =
A
net income / total assets
10
Q
Return on Equity (ROE) =
A
net income / equity
11
Q
Current Ratio =
A
current assets / current liabilities
12
Q
Acid Test Ratio =
A
(current assets - inventory) / current liabilities
13
Q
Quick Ratio =
A
(cash+cash equiv+mktble securities+A/R) / current liabilities
14
Q
Debt Ratio =
A
total liabilities / total assets
15
Q
Time Interest Earned =
A
EBIT / Interest
