Enterprise Equations Flashcards
1
Q
Gross profit =
A
Turnover - cost of sales
2
Q
Net profit =
A
Gross profit - expenses
3
Q
Gross profit margin =
A
(Gross profit / sales revenue) x 100
4
Q
Net profit margin =
A
(Net profit / sales revenue) x100
5
Q
Current ratio =
A
Current assets / current liabilities
6
Q
Liquid capital ratio =
A
(Current assets - stock) / current liabilities
7
Q
Break even point =
A
Fixed costs / (sales price per unit - variable cost per unit)
8
Q
Safety margin=
A
Sales - break even point
