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    ACFI1001 Final Exam Formula Page

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    Jia Wei Miao
    This document contains formulas for key financial ratios used in accounting for decision making. It includes formulas to calculate return on equity, return on capital employed, operating profit margin, gross profit margin, inventory turnover, accounts receivable settlement period, accounts payable settlement period, sales to capital employed, sales per employee, current ratio, acid test ratio, gearing ratio, debt ratio, interest cover ratio, contribution margin, break-even analysis, margin of safety, and present value. These ratios are used to evaluate business performance and make decisions.

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    ACFI1001 Final Exam Formula Page

    Uploaded by

    Jia Wei Miao
    31 views1 page
    This document contains formulas for key financial ratios used in accounting for decision making. It includes formulas to calculate return on equity, return on capital employed, operating profit margin, gross profit margin, inventory turnover, accounts receivable settlement period, accounts payable settlement period, sales to capital employed, sales per employee, current ratio, acid test ratio, gearing ratio, debt ratio, interest cover ratio, contribution margin, break-even analysis, margin of safety, and present value. These ratios are used to evaluate business performance and make decisions.

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    This document contains formulas for key financial ratios used in accounting for decision making. It includes formulas to calculate return on equity, return on capital employed, operating profit margin, gross profit margin, inventory turnover, accounts receivable settlement period, accounts payable settlement period, sales to capital employed, sales per employee, current ratio, acid test ratio, gearing ratio, debt ratio, interest cover ratio, contribution margin, break-even analysis, margin of safety, and present value. These ratios are used to evaluate business performance and make decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    31 views1 page

    ACFI1001 Final Exam Formula Page

    Uploaded by

    Jia Wei Miao
    This document contains formulas for key financial ratios used in accounting for decision making. It includes formulas to calculate return on equity, return on capital employed, operating profit margin, gross profit margin, inventory turnover, accounts receivable settlement period, accounts payable settlement period, sales to capital employed, sales per employee, current ratio, acid test ratio, gearing ratio, debt ratio, interest cover ratio, contribution margin, break-even analysis, margin of safety, and present value. These ratios are used to evaluate business performance and make decisions.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    Newcastle International College NIC-ACFI1001 Accounting for Decision Makers

    NICACFI1001 Final Examination Formula Page

    Return on ordinary Net profit after taxation


    shareholders’ funds (ROE) Average (ordinary share capital + reserves) x 100
    Return on capital employed Operating profit
    Average (share capital + reserves + non-current liabilities) x 100
    Operating profit margin Operating profit / Sales x 100

    Gross profit margin Gross profit / Sales x 100

    Average inventory turnover Average inventory / Cost of sales x 365


    period
    Average settlement period for Average accounts receivable / Credit sales revenue x 365
    accounts receivable
    Average settlement period for Average accounts payable / Credit purchases x 365
    accounts payable
    Sales revenue to capital Sales revenue /
    employed Average (share capital + reserves + non-current liabilities)
    Sales revenue per employee Sales revenue / Average number of employees

    Current ratio Current assets / current liabilities

    Acid test ratio Current assets (excl inventory & prepayments) / current liabilities

    Gearing ratio Long term liabilities


    Share capital + reserves + long term liabilities x 100
    Debt ratio Total liabilities
    Total assets x 100
    Interest cover ratio Operating profit / Interest expense
    Contribution margin per unit Selling price per unit – variable costs per unit
    Break-even units Fixed costs / contribution margin per unit
    Break-even sales dollars Break-even units x selling price per unit
    Units to earn target profit Fixed costs + target profit / contribution margin per unit
    Contribution margin ratio Contribution margin per unit / selling price per unit

    Margin of safety in units Actual sales units – break-even sales units

    Margin of safety dollars Margin of safety units x selling price per unit

    Present value Actual cash flow in year n / (1+r)n

    Accounting rate of return Average annual profit / Average investment x 100


    (ARR)

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