Formulas Flashcards by Jenna Lewis

Q

Goodwill

A

Consideration + NCI - net assets

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Q

Return on shareholders funds

A

(Profit after tax / total equity) x100

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Q

Asset turnover

A

Revenue / capital employed

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Q

Gearing formula

A

Non-current liabilities / (non-current liabilities + total equity)

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Q

Interest cover

A

Operating profit / finance costs

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Q

Current ratio

A

Current assets / current liabilities

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Q

Quick ratio

A

(Current assets - inventories) / current liabilities

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Q

ROCE

A

(Operating profit / capital employed) x 100

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Q

Capital employed (2 formulas)

A

equity + non-current liabilities
Total assets - current liabilities

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Q

Inventory turnover (times)

A

Cost of sales / inventories

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Q

Inventory holding period formula (days)

A

(Inventories / cost of sales) × 365

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Q

Receivables collection period (days)

A

(Trade receivables / revenue) × 365

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Q

Payables collection period formula (days)

A

(Trade payables / cost of sales) × 365

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Q

Working capital cycle (days)

A

Inventory days + receivables days - payables

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