• P/V Ratio is contribution /Sales
  • Just ‘Turnover Ratio’ is ‘Capital Turnover Ratio’ i.e. Sales/ Capital Employed
  • Net Assets = Fixed Assets + (Current Assets – Current Liabilities) = Capital Employed
  • Return on Investment (RoI) is

Return on Capital Employed = Return on Net Assets = PBIT / Capital Employed


If specified as ‘post tax RoI’: RoI = [PBIT (1- T)]/ Capital Employed

{Sometimes RoI is also signified as Return on Total Assets : Use this only if specified this way}

  • Debtors Velocity = Debtors Collection Period = ACP

Debtors Turnover = Sales / Debtors = 12 / ACPmonths = 360 / ACPdaysM


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