Formula's Flashcards
1
Q
Gross Profit Margin
A
Gross Profit
—————– x100
Revenue
2
Q
Mark up
A
Gross Profit
——————- x100
Cost of Sales
3
Q
Net Profit Margin
A
Net Profit
————– x100
Revenue
4
Q
Return on Capital Employed (ROCE)
A
Net profit before income/tax
—————————————– x100
Capital Employed
5
Q
Current Ratio
A
Current Liabilities
6
Q
Acid Test Ratio
A
Current Liabilities
7
Q
Trade Receivables
A
[Trade receivables ]
[————————– ] x365
[ Credit sales ]
8
Q
Trade Payables
A
[Trade payables ]
[———————–] x365
[Credit purchase]
9
Q
Inventory Turnover
A
[Average Inventory]
[————————– ] x365
[ Cost fo sales ]
