EFM Business Fundamentals Flashcards
1
Q
Working Capital Formula
A
Total Current Assets - Total Current Liabilities
2
Q
Current Ratio Formula
A
Total Current Assets / Total Current Liabilities
Goal is 1.2-2
3
Q
Debt to Equity Ratio
A
Total Liabilities / Equity
4
Q
Profit / Net Income / Net Earnings Formula
A
Revenue - Expenses
5
Q
Gross Profit Formula
A
Sales Revenue - Cost of Goods Sold
6
Q
Operating Income Formula
A
Gross Profit - Operating Expenses
7
Q
Net Income Formula
A
Operating Income - Non Operating Expenses
8
Q
Gross Profit Margin Formula
A
Gross Profit / Sales Revenue
9
Q
Profit Margin Formula
A
Net Income / Sales Revenue
