pharm admin test 2, equations

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coal
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267421
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pharm admin test 2, equations
Updated:
2014-03-23 13:24:32
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pharm admin test equations
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pharm admin test 2,equations
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pharm admin test 2, equations
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  1. gross profit margin equation
    • [(sales - COGS)/sales] --> all income statement
    • 20-25%
  2. tnet profit margin equation
    • net income/sales --> all income statement
    • 2-4%
  3. return on equity
    • net income(IS)/avg. owners equity (BS)¬†
    • 15-30%
  4. return on assets equation
    • net income (IS)/avg total assets(BS)
    • 15%
  5. current ratio
    • current assets/current liabilities --> all balance sheet
    • at least 2%
  6. working capital equation
    current assets - current liabilities
  7. quick ratio equation
    • (current assets - inventory)/current liabilities --> all balance sheet
    • 1-2%
  8. total debt to equity ratio (TDER) equation
    • (total liabilities x 100%)/ owners equity --> all balance sheet
    • 70-80%
  9. leverage equation
    (total liabilities + owners equity)/ owners equity --> all balance sheet
  10. inventory turnover  ratio (ITR) equation
    COGS (IS)/ avg. inventory (at cost)(BS)
  11. accounts receivable turnover ratio (RTR) equation
    credit sales(IS)/avg. accounts receivable(BS)
  12. liquidity equations and what that means
    • working capital
    • quick ratio
    • current ratio

    ability to meet current debt obligations without jeopardizing profit potential
  13. solvency equations and what that means
    • total debt to equity ratio
    • leverage

    ability to survive financially (to meet all debt obligations and avoid bankruptcy)
  14. efficiency equations and what that means
    • inventory turnover ratio
    • accounts receivable turnover ratio

    shows the ability of the organization to achieve optimal performance and growth (max output with min input)
  15. profitability equations and what that means
    • gross profit margin
    • net profit margin
    • return on equity
    • return on assets

    the ability of the organization to generate a profit after all expenses have been paid
  16. CTD equation
    [DC + sum(RxS * HW/TH) + (HRC * RxSF/TSF) + (OIC * RxSA/TSA)]/ RxV
  17. COS equation
    [DC + sum(SerS * HW/TH) + (HRC * SerSF/TSF) + (OIC * SerSA/TSA)] / SerV
  18. COGD %
    100 - gross margin %
  19. price of Rx equation
    COGS(ingredient costs) + CTD + profit
  20. average net profit comparison equation
    price/reimbursement - COGS = gross margin - CTD = net profit/loss
  21. differential analysis equation
    DR (avg. gross margin per Rx) - DC (avg. variable cost per Rx)

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