Formulas Flashcards
1
Q
How do you work out net profit margin?
A
Net profit
———— x100 = %
Revenue
2
Q
How do you work out current ratio?
A
Current assets
—————- = _:1
Current liabilities
3
Q
How do you work out acid test?
A
Current assets - stock
———————=_:1
Current liabilities
4
Q
How do you work out ROCE?
A
Net profit
———— x100 = %
Capital employed
5
Q
What is the formula for gross profit margin?
A
Gross profit
————– x100 = %
Revenue
6
Q
How do you work out gearing?
A
Long term liabilities
——————x100=%
Capital employed
7
Q
How do you work out capital employed?
A
Add together as many of these that are there: Long term liabilities Retained profit Reserves Share capital
8
Q
How do you work out percentage change?
A
Difference between 2 years
—————— x100=%
Earliest figure
