2.3 FORMULAS Flashcards
1
Q
working capital
A
current assets - current liabilities
2
Q
gross profit
A
sales revenue - cost of sales
3
Q
operating profit
A
gross profit - overheads
4
Q
net profit
A
operating profit - interest/tax
5
Q
gross profit margin
A
( gross profit/revenue ) x100
6
Q
operating profit margin
A
( operating profit/revenue ) x100
7
Q
net profit margin
A
( net profit/revenue ) x100
8
Q
current ratio
A
current assets/current liabilities
9
Q
acid test ratio
A
( current assets - inventories ) / current liabilities
