The most important formulas to remember Flashcards
1
Q
Return on capital employed
A
Net profit before interest and tax
—————————————— *100
Capital employed
2
Q
Current ratio
A
Current liabilities
3
Q
Liquid capital ratio
A
Current liabilities
4
Q
Gross profit margin
A
Gross profit
—————— *100
Revenue
5
Q
Mark - up
A
Gross profit
—————— *100
Costs of sales
6
Q
Net profit margin
A
Net profit
—————– *100
Revenue
7
Q
Break even point
A
Contribution per unit
8
Q
Margin of safety
A
Actual sales in units - breakeven level of output
9
Q
Contribution per unit
A
Selling price - variable costs
10
Q
Net profit
A
Gross profit
—————— *100
Costs of sales
