Equations

• Reorder Level


  $Re order Level =$$Minimum Consumption *$$Maximum Lead Time$
• Gross Profit Ratio


  $Gross Profit Ratio =$$Gross Profit/Sales *$$100$
• Inventory Residence Period 


  $Inventory Residence Period =$$Average Stock/Cost of Sales *$$Number of Working days$
• Minimum Stock Level 


  $Minimum Stock Level =$$Reorder Level - ( Average Consumption * Average Lead Time )$
• Maximum Stock Level 


  $Maximum Stock Level =$$Reorder Level - ( Minimum Consumption * Minimum Lead Time) +$$Reorder Quantity$
• Quick Asset Ratio


  $Quick Asset Ratio =$$Liquid Assets / Current Liabilities$
• Return on Equity


  $Return On Equity =$$(Profit After Tax / Total Equity) *$$100$%
• Debt Equity Ratio


  $Debt Equity Ratio =$$Debt Capital / Equity Capital$
• Interest Cover Ratio


  $Interest Cover Ratio =$$(Profit Before Tax + Interest ) / Interest$
• Interest Cover Ratio


  $Interest Cover Ratio =$$(Profit Before Tax + Interest ) / Interest$
• Net Profit Ratio


  $Net Profit Ratio =$$( Profit for the Year / Sales ) *$$100$
• Net Profit Ratio


  $Net Profit Ratio =$$( Profit for the Year / Sales ) *$$100$
• Earning per Share


  $Earning per Share =$$Profit for the Year / No.of Ordinary Shares$
• Earning per Share


  $Earning per Share =$$Profit for the Year / No.of Ordinary Shares$
• $Unit Contribution =$$Selling Price - Variable Cost$
• $Breakeven Point =$$Fixed Cost / Unit Contribution$
• $No. Of units Needed for Expected Profit =$$( Fixed Cost + Expected Profit ) / Unit Contribution$
• $CS Ratio =$$Selling Price / Unit Contrinution$
• $Margin of Safety (Number) =$$Expected Number of Units - Breakdown Units$
• Margin of Safety Value = Margin of Safety(Number) * Unit Selling Price
• Surplus if X Number of Units Participated = Margin of Safety Units * Unit Contribution
• Surplus if X Number of Units Participated = Total Contribution - Fixed Cost
• Fee to Be charged if X Number of Units Participate = No.of Persons at BEP = fixed Cost / Unit Contribution
• Rate of Return = (Annual Average Profit / Initial Investment) * 100
• Program Fee to Be Charged if both Expected Profit and Expected Participant Number is Given

  No. Of Expected Persons = (Fixed Cost + Expected Profit) / Unit Contribution
• BEP = Fixed Cost / CS Ratio
• BEP Value = (Fixed Cost / Unit Contribution) * Unit Selling Price