A2 Business Formulae
Studied by 3 people
Call with Kai
Knowt Play
Learn
Practice Test
Spaced Repetition
Match
Flashcards1/34
Earn XP
Description and Tags
Name | Mastery | Learn | Test | Matching | Spaced |
|---|
No study sessions yet.
35 Terms
Absenteeism rate
number of days absent / total workdays x 100
Accounting Rate of Return
average annual profit / average investment x 100
Acid Test Ratio
liquid assets / current liabilities
Annual Depreciation
original cost - residual value / expected useful life
Average Inventory
inventory start + inventory end / 2
Average Investment
initial capital cost + residual capital value / 2
Capital employed (%):
non current liabilities + shareholders equity = issued shares + reserves
Cost of Sales
opening inventories + purchases - closing inventories
Current Ratio
current assets / current liabilities
Dividend Cover Ratio
profit for year / annual dividends
Dividend Per Share
total annual dividends / total issued shares
Dividend Yield Ratio
dividend per share / market share price x 100
Earnings Per Share
profit for year / total issues shares
Free Float
estimated next activity - duration - estimated this activity
Gearing Ratio
non current liabilities / capital employed x 100
Gross Profit
revenue - cost of sales
Gross Profit Margin Ratio (%):
gross profit / revenue x 100
Income Elasticity of Demand
percentage change in demand / percentage change in income
Liquid Assets
current assets - inventories
Market Share
sales of business / total market sales x 100
Net Book Value
original cost - accumulated depreciation
Net Realisable Value
existing inventory value - cost of selling
Operating Profit Margin Ratio
operating profit / revenue x 100
Additional Months for Payback Period
additional net cash flow needed / annual cash flow x 12
Price Earnings Ratio
market share price / earnings per share
Price Elasticity of Demand
percentage change in demand / percentage change in price
Promotional Elasticity of Demand
percentage change in demand / percentage change in promotional spending
Rate of Inventory Turnover
cost of sales / average inventory
Reserve
shareholders’ equity - share capital
Return on Capital Employed Ratio
operating profit / capital employed x 100
Total Float
latest finishing time - duration - earliest starting time
Total Revenue
selling price x quantity sold
Trade Payable Turnover Days
trade payables / credit purchases x 365
Trade receivables (days)
trade receivables / credit sales x 365
Working Capital
current assets - current liabilities
Note 
Flashcards (227)