buss 3 caluclations

  • Created by: cjbeatz
  • Created on: 06-06-16 15:36

the basics

The basics:

Gross profit: revenue – vc

Net profit: revenue -vc-fc

(npm/ gpm = gp/np/revnue x 100)

Net assets = total assets – total liabilities

Working capital (day 2 day) current assets-current liabilities 

1 of 11

investment decisions

Investment decisions:

ARR: (higher = best)

average profits/Investment x 100


Amount invested/ Actual profit

2 of 11

financial ratios

Finanicial ratios

Receivable days (days business must get paid by) 

Av recievables/ Total number of credit sales x365

Payable days: (days a firm has to pay its suppliers)

 Av payables/ Total credit purchases x365

3 of 11

liquidity ratios


Acid test (short term owes) 1:1 = ideal <1:1 issues

Current assets – stock/ Current liabilities

Current ratio (compares assets, liabilities and stock)

Current assets /Current liabilities 

4 of 11

profitability ratios


Roce (20-30% = good (how much made vs how much invested) Gross profit/ Capital employed  (total equity and non current liabilities) x 100

Gearing (proportion of lt loans and value of equity)(share capital) (50% = high less vunrebale to intrest rates )

Lt loans / Total equity and non current liabilities 

5 of 11

shareholder ratios

Shareholder ratios

Dividend per share:

Total dividends paid/ No of shares issued

Dividend yield (the dividend expressed as a percentage of the share price) (investors want this high)

Dividend per share/ Price per share

6 of 11

marketing calculations


Market growth (%)

New market size – old market size/ Old market size x 100

Market size: Sales / Total market size x 100

7 of 11

efficiency ratio s

8 of 11

efficiency ratios

Efficiency ratios

Assets turnover : Sales revenue/ assets

Inventory turnover: Cost of sales / Cost of av stock held 

9 of 11

critical path calculations

EARLIEST START TIME: est + duration of PREVIOUS activity

EARLIEST FINISH TIM: est + duration

LATEST FINISH TIME= lft – duration of NEXT activity

LATEST START TIME= lft- duration of activity

FLOAT TIME: duration of CURRENT activity – EST of CURRENT activity


10 of 11


Percenatge change

New figure-previous figure / Previous x 100

Sd: sum of value of means / Total number of values 

11 of 11


No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all calculations resources »