unit 5 formula Flashcards
Contribution per unit
Price - Variable Cost per unit
Current ratio
Current liabilities (trade payables and other current liabilities)
gearing
NON-CURRENT LIABILITIES
—————————————- x100
TOTAL EQUITY + NON-CURRENT LIABILITIES (OR CAPITAL EMPLOYED)
GROSS PROFIT
REVENUE – DIRECT COSTS
GROSS PROFIT MARGIN
gross profit
—————- x100
turnover
INVENTORY TURNOVER (STOCK TURNOVER)
average inventories hold
net assets
total assets - current liabilities
operating profit
gross profit - indirect costs
operating profit margin
operating profit
———————— x100
sales (ie revenue)
payable days
payables
————- x365
revenue
PROFIT FOR THE YEAR
OPERATING PROFIT + INTEREST RECEIVED –
INTEREST PAID – TAX ON PROFITS
Profit for the year margin
profit for the year
————————– x100
turnover
RECEIVABLES DAYS
RECEIVABLES X 365
Return on Capital Employed % (ROCE)
operating profit
———————– x100
Total equity + non-current liabilities
Return on Investment (%)
Return on investment (£)
———————————– x100
Cost of the investment (£)
