Equations Flashcards

1
Q

Gross profit =

A

Turnover - cost of sales

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2
Q

Net profit =

A

Gross profit - expenses

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3
Q

Gross profit margin =

A

(Gross profit / sales revenue) x 100

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4
Q

Net profit margin =

A

(Net profit / sales revenue) x100

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5
Q

Current ratio =

A

Current assets / current liabilities

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6
Q

Liquid capital ratio =

A

(Current assets - stock) / current liabilities

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7
Q

Break even point =

A

Fixed costs / (sales price per unit - variable cost per unit)

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8
Q

Safety margin=

A

Sales - break even point

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