Liquidity & Profitability Ratios Flashcards
1
Q
What is the formula for the current ratio?
A
Current Assets/Current Liabilities:1
2
Q
What is the formula for the Liquid Capital ratio?
A
Current Assets - Inventory/ Current Liabilities
3
Q
What is the formula for the gross profit margin?
A
(Gross Profit/ Revenue) x 100 = x%
4
Q
What is the formula for the markup?
A
(Gross Profit/Cost of sales) x 100 = x%
5
Q
What is the formula for Expenses in relation to Revenue?
A
(Expenses/Revenue) x 100 = x%
6
Q
What is the formula for profit in relation to revenue?
A
(Profit for the year before tax/Revenue) x 100 = x%
7
Q
What is the formula for the Return on Capital Employed?
A
(Profit from operations/Capital Employed) x 100 = x%