Equations Flashcards
1
Q
Gross profit margin
A
Gross profit / revenue x 100
2
Q
Profit for the year margin
A
Profit for the year / revenue X 100
3
Q
Gross profit ratio
A
Gross profit / net sales X 100
4
Q
Return on capital employed
A
Operating profit / capital employed X 100
5
Q
Current test ratio
A
Current assets / current liabilities
6
Q
Acid test ratio
A
Current assets - stock / current liabilities
7
Q
Gearing ratio
A
Non-current liabilities / capital employed X 100
8
Q
Labour productivity
A
Output per time period / number of employees
9
Q
Labour turnover
A
Number of staff leaving / number of staff employed X 100
10
Q
Contribution
A
Selling price per unit - variable cost per unit
11
Q
Average rate of return
A
Total net return / capital outlay ( cost )
