Calculation Questions Flashcards

1
Q

Sales revenue (or sales turnover)

A

the total value of sales made during the trading period = selling price x quantity sold

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2
Q

gross profit margin (%)

A

gross profit/ sales revenue x 100

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3
Q

net profit margin (%)

A

net profit/ sales revenue x 100

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4
Q

current ratio

A

current assets/ current liabilities

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5
Q

acid-test ratio

A

liquid assets/ current liabilities

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6
Q

liquid assets

A

current assets - inventories (stocks) = liquid assets

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7
Q

return on capital employed (%)

A

net or operating profit/ capital employed x 100

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8
Q

Liquidity ratios

A
  • current ratio

- acid-test ratio

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9
Q

gearing ratio (%)

A

long-term loans/ capital employed x100

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10
Q

rate of capacity utilisation

A

current output level/ max output level x 100

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11
Q

capital productivity

A

output/ capital employed

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12
Q

labour productivity

A

total output in a given time period/ total workers employed

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13
Q

Free float

Total float

A

EST (next activity) - duration - EST

EST: Earliest Start Time

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14
Q

Total float

A

LFT - duration - EST

LFT: Latest Finished Time

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15
Q

Market Share (%)

A

firm’s sales in time period/ total market sales in time period x 100

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16
Q

price elasticity of demand (PED)

A

percentage change in quantity demanded/ percentage change in price

17
Q

income elasticity of demand

A

% change in demand for the product/ % change in consumer incomes

18
Q

promotional elasticity of demand

A

% change in demand for the product/ % change in promotional spending

19
Q

cross elasticity of demand

A

% change in demand for good A/ % change in price of good B

20
Q

absenteeism (%)

A

no. of staff absent/ total no. of staff x 100

21
Q

labour turnover

A

number of staff leaving in 1 year/ average number of staff employed x 100

22
Q

dividend yield ratio (%)

A

dividend per share x 100 / current share price

23
Q

dividend per share

A

total annual dividends / total number of issued shares

24
Q

dividend cover ratio

A

profit after tax and interest / annual dividends

25
Q

price/ earning ratio

A

current share price/ earnings per share

26
Q

earnings per share

A

profit after tax/ total number of shares

27
Q

inventory (stock) turnover ratio

A

cost of goods sold / value of inventories

28
Q

days’ sales in receivables ratio

A

accounts receivable x 365 / sales turnover