Business Formulas

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Inventory Turnover
(average inventory/ cost of sales) x 365
1 of 9
Payable Days
(Trade payables/ Credit purchases) x 365
2 of 9
Receivable Days
(Trade receivables/Credit sales) x 365
3 of 9
Current Ratio
Current assets/ Current liabilities
4 of 9
Liquid Capital Ratio
(Current assets - Inventory)/ Current liabilities
5 of 9
Gross Profit Margin
Gross Profit/Revenue x 100
6 of 9
Operating Profit Margin
Operating Profit/ sales x 100
7 of 9
Mark Up
Gross Profit/Cost of Sales x 100
8 of 9
ROCE
Net profit before interest and tax/ capital employed x 100
9 of 9

Other cards in this set

Card 2

Front

Payable Days

Back

(Trade payables/ Credit purchases) x 365

Card 3

Front

Receivable Days

Back

Preview of the front of card 3

Card 4

Front

Current Ratio

Back

Preview of the front of card 4

Card 5

Front

Liquid Capital Ratio

Back

Preview of the front of card 5
View more cards

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