Ratio Formula Flashcards
1
Q
Formula for ROCE (Return on capital employed)
A
(Net profit/Capital employed) * 100
2
Q
Formula for Gross Profit Margin
A
(Gross profit/Sales turn over) * 100
3
Q
Formula for Net profit margin
A
(net profit/sales turn over) * 100
4
Q
Formula for Current ration
A
Current assets / Current liabilities
5
Q
Formula for Acid ratio
A
(current assets - inventories)/ current liabilities
6
Q
What is the ideal Acid ratio ?
A
1:1
7
Q
What is the ideal current ratio ?
A
2:1
