Formulas?? (1 Viewer)

[sk8ie_boi]

So what are all the formulas we need to know?

Current ratio = current assets / current liabilities
Gearing ratio = lorg-term debt / sharholder's equity
Gross profit = gross profit / sales
Net profit margin = net profit / sales
Return on owner's equity = net profit / owner's equity
Expense ratio = operating expenses / net sales
Accounts receivalbe trunover ratio = accounts receivable / average sales per day

Working Capital = Current assets - Current Liabilities

So, what other formulas do we need to know? What about the formula for COGS?? .. I can't remember dat one.

 

[Jexi]

There is a formula for COGS? Isn't just purchases + freight ect ect?

oh the accounting equation? A = L + OE

 

[sk8ie_boi]

There is a formula for COGS? Isn't just purchases + freight ect ect?

oh the accounting equation? A = L + OE

COGS is got to do wif umm sales, expenses and sumthing else .. we did it in year 11 .. but i forgot the formula for it .. and i fink we need it since the hsc mite ask u a question which u need COGS

 

[exa_boi87]

COGS = Cost of Goods Sold, meaning the incurred expenses through manufacturing the final product (includes raw materials and production costs).
Net Profit is generally defined as Gross Profit - COGS, they *may* ask this .. but my bets on the syllabus ratios.

 

[~SeXcSuM~]

Gross Profit = Revenue - COGS

so, COGS = Revenue - Gross Profit

?

 

[MeehShanku]

just a question about the gearing ratio=Long term debt/owners equity. Long term is = to non current liabilities right?

Edit: as well is gross profit ratio the measurement of profit before tax and net profit ration after tax??

 

[~SeXcSuM~]

just a question about the gearing ratio=Long term debt/owners equity. Long term is = to non current liabilities right?

Edit: as well is gross profit ratio the measurement of profit before tax and net profit ration after tax??

Gearing is:
TOTAL liabilities/Owners equity

so im thinkin its both long and short term liabilities

 

[rach_1]

Working Capital Ratio

How do you figure out working capital ratio?
I know working capital is current assets - current liabilities... im just not sure bout ratio??

 

[MeehShanku]

Gearing is:
TOTAL liabilities/Owners equity

so im thinkin its both long and short term liabilities

aight kool.

How do you figure out working capital ratio?
I know working capital is current assets - current liabilities... im just not sure bout ratio??

working capital ratio = Current ratio

 

[going_under]

How do you figure out working capital ratio?
I know working capital is current assets - current liabilities... im just not sure bout ratio??

working capital = current assets - current liabilities

working capital RATIO = current assets / current liabilities

 

[Jexi]

Net Profit is generally defined as Gross Profit - COGS, they *may* ask this .. but my bets on the syllabus ratios.

No its not.

Sales - COGS = Gross Profit

Gross Profit - Expenses = Net Profit.

 

[MarsBarz]

COGS = Opening stock + purchases - closing stock