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Gravity
Terms in this set (17)
Working Capital
current assets - current liabilities
Receivables days
Receivables / revenue x 365
Payables days
(Payables / cost of sales) x 365
Inventory Days
Inventory/ Cost of sales X 365
cash conversion cycle
Inventory days + Receivables days- payables Days
Gearing ratio
non-current liabilities/capital employed x 100
Interest Coverage Ratio
earnings before interest and taxes/interest expense
Current Ratio
Current assets/current liablities
Acid Test Ratio
(Current Assets - Inventory) / Current Liabilities
Gross Profit Margin
Gross profit/sales revenue x 100
Operating Profit Margin
Operating profit / revenue x 100
Net Profit Margin
(Net Profit before Tax / Sales) x 100
Absorption Rate
Total fixed overhead / normal level of production
Contribution per unit
Selling price - variable cost per unit
break-even point
Total fixed cost / contribution per unit
Margin of Safety Percentage
Margin of safety in units / current level of sales x 100
ARR
Average accounting profit/ Average investment x 100
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