Is there a list anywhere of all the financial performance formulas?

topcat

I have tried making one myself but everytime I think I have all the formulas and ratios another one appears...

Kris1990

I'll try to make the list off the top of my head:

Gross Profit Margin - Gross Profit / Revenue * 100
Operating Profit Margin - Operating Profit / Revenue * 100
Expense/Revenue Margin (admin/distribution) - Admin/Distribution Costs / Revenue *100
Return on Capital Employed - Operating Profit / Total Equity + Non-Current Liabilities *100
Return on Net Assets - Operating Profit / Total Equity *100
Inventory Turnover - Cost of Sales / Inventory
Inventory Days - Inventory / Cost of Sales * 365
Receivable Days - Trade Receivables / Revenue * 365
Payable Days - Trade Payables / Cost of Sales * 365
Gearing Ratio - Non-Current Liabilities / Total Equity + Non-Current Liabilities *100
Interest Cover - Operating Profit / Finance Costs

I believe those are right but feel free to correct me if I'm wrong. I found the hardest part to remember was if the ratio was written as a percentage, x times or ratio of 1. I found writing them all out a few times made me remember them all Good luck.

sdv

log onto my aat

look in support and guidance section

look into standards document.

SandyHood

Topcat
sdv has given you the best advice
This is the link
https://www.aat.org.uk/study-support/resource/file/21276
look on pages 7 and 8


I recently had a couple of financial statement revision classes (tasks 7 and 8) and looked at the ratios
I have also had financial performance classes for tasks 7 and 10
Make sure you learn the appropriate formulae for the exam you are looking at
For financial performance the information you are looking for is for a different purpose than financial statements
Gearing is defined as:
mmm Total Debt mmmmmmm x 100mm = mmmm Total long term loans + Total short term loans + Overdraftsmmm x 100
m Total Debt + Total EquitymmmmmmmmmmmmTotal Equity + Total long term and short term loans +Overdrafts

Kelly7

There's 16 you need to know for the exam...

expense / revenue %
gross profit %
operating profit %
return on capital employed
return on shareholders funds
current ratio
quick ratio
asset turnover (net)
asset turnover (non current assets)
inventory turnover
inventory holding period
trade rec days
trade payable days
working capital cycle
gearing
Interest cover

x

SandyHood

Kelly
My apologies for copying and changing your list

Kelly7 wrote: »

I've taken 4 away and added 6 to bring this up to 18

1. expense / revenue %
2. gross profit %
3. operating profit %
4. return on capital employed
5. return on shareholders’ funds although this is referred to as return on net assets and the "return" is the profit from operations whereas in financial statements they use profit for the year (after tax)
6. current ratio
7. quick ratio
8. inventory holding period
9. trade rec days
10. trade payable days
11. working capital cycle
12. gearing
13. value added
14. labour capacity
15. labour efficiency
16. labour activity
17. measures of quality and service
18. measures of productivity

x

asset turnover (net) not mentioned in the guidance notes
asset turnover (non current assets) not mentioned in the guidance notes
inventory turnover not mentioned in the guidance notes
Interest cover not mentioned in the guidance notes


This is my source pages 7 and 8 - the Financial Performance Guidance notes

Kris1990

SandyHood wrote: »

Kelly
My apologies for copying and changing your list

asset turnover (net) not mentioned in the guidance notes
asset turnover (non current assets) not mentioned in the guidance notes
inventory turnover not mentioned in the guidance notes
Interest cover not mentioned in the guidance notes


This is my source pages 7 and 8 - the Financial Performance Guidance notes

I had an interest cover question in my Financial Performance exam I sat early December. It's an easy formulae to learn anyway so it's worth knowing it.

SandyHood

Thank you Kris
My apologies to Kelly7

One little point - My list was taken from the 2013 standards guidance notes just in case the exam Kris took was from the 2010 standards

CeeJaySix

Does seem a little odd - certainly the Osborne book for 2013 has asset turnover and inventory turnover in. I thought it also had interest cover, but I can't find it, so maybe remembering it from somewhere else. I don't remember having a question specifically on it, but I did have one that you needed to understand it to work out the ROCE from the figures given - can't remember whether it was a mock or the actual exam (or maybe there was another way to do it, unfortunately it was a few months ago now). Can't hurt to know them anyway!

topcat

Thank you everyone I will start making a better list from all your suggestions (wish the book had one). Do we need to know efficiency ratio, activity ratio, capacity ratio? I'll have a look at these guidelines

**edit sorry skim read and missed these in the post above

welshwizard

A tip to help revise formulae - studyblue.com is an online tool that enables you to build packs of formula flashcards that you can access on your phone, tablet etc. That way you always have them with you, they never get ripped and you can check you progress.

topcat

welshwizard wrote: »

A tip to help revise formulae - studyblue.com is an online tool that enables you to build packs of formula flashcards that you can access on your phone, tablet etc. That way you always have them with you, they never get ripped and you can check you progress.

really great find welshwizzard thank you for sharing !

Have been looking for something like this as i am always loosing my notes or they are getting ripped up in the rucksack

Lucy_M

Hi,
Aren't some of those financial performance ratios not financial statements? From looking in the Osbourne books I was able to make a list of 16. including interest cover, with explanations as to their implications. I have the same list as Kelly7. I know nothing of efficiency, capacity or activity ratios, I only started financial performance today so I would think they are covered in that module?

Kelly7

Apologies, my list was the fin statements list. I was hoping it was the same for fin performance but im guessing not? X