Cash flow (management) & margins Flashcards
1
Q
How do you calculate net profit margin?
A
Net profit
———— X 100
Revenue
2
Q
What are ways to manage cash flow ?
A
- holding less stock
- getting supplies on trade credit
- renting equipment rather than buying it
- overdraft
- owners putting more cash into the business
- customers pay up front
- making sure customers pay on time
3
Q
How do you calculate gross profit margin?
A
Gross profit
————- X 100
Revenue
