Operation management formula sheet, Cheat Sheet of Business Management and Analysis

Download Operation management formula sheet and more Cheat Sheet Business Management and Analysis in PDF only on Docsity! Business management guide 87 Appendices Formulae The following formulae will be used in business management external assessment. A copy of the formulae will be provided to students for the examination. Formulae for ratio analysis (SL/HL) Profitability ratios (SL/HL) = × gross profit Gross profit margin 100 sales revenue = × net profit before interest and tax Net profit margin 100 sales revenue Liquidity ratios (SL/HL) = current assets Current ratio current liabilities − = current assets stock Acid test (quick) ratio current liabilities Efficiency ratios (SL/HL) = × net profit before interest and tax Return on capital employed (ROCE) 100 capital employed where loan capital (or long-term liabilities) share capital retained profitcapital employed = + + Efficiency ratios (HL only) = cost of goods sold Stock turnover (number of times) average stock or = × average stock Stock turnover (number of days) 365 cost of goods sold where cost of goods sold is an approximation of total credit purchases opening stock closing stock and 2 average stock + =