formulaes for business (1 Viewer)

[wrxsti]

Hi, i was just wondering if anyone has a sheet with all the formulas on it, as a summarised form...would surely help.....thxx people

 

[Chic07]

Liquidity:

Current Assets
Current Liabilities

(generally ideally 2:1, but depends on type of industry business is in)

Solvency:

Total debts
Owner's Equity

(the higher the ratio, the less solvent the firm)

Profitability (always expressed as %age)
Gross Profit Ratio:

Gross Profit x 100
Sales

Net Profit Ratio:

Net Profit x 100
Sales

Return on Owner's Equity Ratio:

Net Profit x 100
Owner's Equity

Efficiency:
Expense Ratio:

Expenses x 100
Sales

Accounts Receivable Turnover Ratio:

Sales = Answer
Accounts Receivable

365 > 12 (ie, accounts receivables collected every 30 days or quicker)
Answer

Accounting Equation:

Assets = Liabilities + Owner's Equity

Gross Profit Equation:

Sales - COGS

Net Profit Equation:

Gross Profit - Expenses

(Sales - COGS - Expenses)

Working Capital Equation:

Current Assets - Current Liabilities

 

[Chic07]

i think thats all of them, but check to make sure, just in case iv forgotten something

 

[wrxsti]

COOL...thx heaps man

 

[Chic07]

no worries