Paper 2 Formula Sheet (English).pdf

Gross profit = (Sales / Cost of sales) 100
Net profit = (Sales / Cost of sales) 100
Operating expenses = (Sales / Operating expenses) 100
Operating profit = (Sales / Operating expenses) 100
Net profit after tax = (Net profit / Average shareholders' equity) 100
Return on investment = (Net profit before tax + interest expense / Average capital employed) 100
Current ratio = Current assets : Current liabilities
Acid test ratio = (Current assets - inventories) : Current liabilities
Debtor days = (Average debtors / Credit sales) 365 or 12
Creditor days = (Average creditors / Credit purchases) 365 or 12
Inventory turnover = Cost of sales / Average inventories
Inventory days = (Average inventories / Cost of sales) * 365 or 12
Current ratio = Current assets : Current liabilities
Gearing ratio = Non-current liabilities : Shareholders' equity
Liquidity ratio = Total assets : Total liabilities
Earnings per share = Profit after tax / No. shares in issue
Dividend per share = Ordinary share dividends / No. shares in issue
Contribution per unit = Selling price per unit - Variable cost per unit
Fixed cost per unit = (Selling price per unit - Variable cost per unit)
Net asset value per share = Total ordinary shareholders' equity / No. shares in issue