fin2603 formulae 2023 with verified questions and answers

ROI net profit after tax / total assets x 100 GROSS PROFIT MARGIN sales - cost of sales / sales x 100 NET PROFIT MARGIN net profit after tax / sales x 100 BE POINT IN UNITS total fixed cost / marginal income per unit BE POINT IN RAND number of units x selling price PI present value of net cash flows / initial investment accept profitability index if it is greater than 1 ROE net profit after tax / shareholders equity x 100 EPS net profit after tax / outstanding shares current ratio current assets / current liabilities AAI + ACP - APP cash conversion cycle average age of accounts recievable accounts recievable / (annual sales / 360 ) inventory turnover cost of goods sold / average inventory average inventory beginning inventory + ending inventory / 2 quick ratio current assets - inventory / current liabilities p/e ratio current market price / eps weighted average cost of capital weight x after tax cost of debt after tax cost of debt interest rate x (1 - tax rate) operating cycle aai + acp reorder point lead time in days x daily requirement total asset turnover sales / total assets