Business Equations pt.4 Flashcards
1
Q
How to work out Current Ratio?
A
Current Assets / Current Liabilities
2
Q
How to work out Gearing?
A
( Ncl / Total Equity + Ncl ) X 100
3
Q
How to work out Op Profit Margin
A
Op profit / Revenue X 100
4
Q
How to work out Gross Profit Margin
A
Gross Profit / Revenue X 100
5
Q
How to work out Return on Capital Employed?
A
Operating Profit / Capital Employed X 100
6
Q
How to work out Capital Employed?
A
Total Assets - Current Liabilities
7
Q
How to work out Inventory Turnover?
A
Average Inventory Held / Cost of sales
8
Q
What does Total Equity + Ncl =
A
Capital Employed
9
Q
How to work out Average Rate of Return?
A
( Avg annual Return / Initial cost of project ) X 100
10
Q
A
