Formula Sheet - Accounting
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Formulae Sheet 1. Return on Assets = Net Profit before Interest and Tax / Average Total Assets 2. Average Accounts Payable settlement = Average Accounts Payable / Credit purchases x 365 3. Asset turnover ratio = (Sales / average Total Assets) x 100 4. Asset turnover period = (Average total assets / Sales) x 365 5. Return on Equity (Return on Shareholder’s’ Funds) = Net Profit after Tax and preference dividends / Average ordinary share capital + Reserves x 100 6. Gross Profit margin (ratio) = (Gross Profit / Sales) x 100 7. Net Profit margin (ratio) = Net Profit before Interest and Tax / Sales x 100 8. Current ratio = Current Assets / Current Liabilities 9. Acid test (Quick asset) ratio = Current Assets (excluding Inventory and Prepayments) / Current Liabilities 10. Debt/Equity ratio = Total Liabilities / Total Equity x 100% 11. Debt ratio = Total Liabilities / Total Assets x 100% 12. Equity ratio = Total Equity / Total Assets x 100% 13. Gearing ratio = Long-term Liabilities / Share Capital + Reserves + Long-term Liabilities x 100 14. Inventory turnover = Average Inventory / Cost of Sales x 365 15. Average settlement for Accounts Receivable = Average Accounts Receivable / Credit Sales x 365 16. Interest coverage ratio = Net Profit before Interest and Tax / Interest expense 17. Dividend per share = Dividends announced during the period / Number of shares on issue 18. Dividend payout ratio = Dividends announced for the year / Earnings for the year available for dividends x 100 19. Dividend yield = Dividend per share (1 – t) / Market price per share x 100 20. Earnings per share = Earnings available to ordinary shareholders / number of ordinary shares on issue 21. Price/earnings ratio = Market value per share / Earnings per share 22. Contribution Margin = Selling price – Variable Costs 23. Contribution
Formulae Sheet 1. Return on Assets = Net Profit before Interest and Tax / Average Total Assets 2. Average Accounts Payable settlement = Average Accounts Payable / Credit purchases x 365 3. Asset turnover ratio = (Sales / average Total Assets) x 100 4. Asset turnover period = (Average total assets / Sales) x 365 5. Return on Equity (Return on Shareholder’s’ Funds) = Net Profit after Tax and preference dividends / Average ordinary share capital + Reserves x 100 6. Gross Profit margin (ratio) = (Gross Profit / Sales) x 100 7. Net Profit margin (ratio) = Net Profit before Interest and Tax / Sales x 100 8. Current ratio = Current Assets / Current Liabilities 9. Acid test (Quick asset) ratio = Current Assets (excluding Inventory and Prepayments) / Current Liabilities 10. Debt/Equity ratio = Total Liabilities / Total Equity x 100% 11. Debt ratio = Total Liabilities / Total Assets x 100% 12. Equity ratio = Total Equity / Total Assets x 100% 13. Gearing ratio = Long-term Liabilities / Share Capital + Reserves + Long-term Liabilities x 100 14. Inventory turnover = Average Inventory / Cost of Sales x 365 15. Average settlement for Accounts Receivable = Average Accounts Receivable / Credit Sales x 365 16. Interest coverage ratio = Net Profit before Interest and Tax / Interest expense 17. Dividend per share = Dividends announced during the period / Number of shares on issue 18. Dividend payout ratio = Dividends announced for the year / Earnings for the year available for dividends x 100 19. Dividend yield = Dividend per share (1 – t) / Market price per share x 100 20. Earnings per share = Earnings available to ordinary shareholders / number of ordinary shares on issue 21. Price/earnings ratio = Market value per share / Earnings per share 22. Contribution Margin = Selling price – Variable Costs 23. Contribution