U1 AOS2: KK6 - Indicators of Business Performance Flashcards
1
Q
Return on Owner’s Investment =
A
Net Profit / Average Capital x 100
2
Q
Average Capital =
A
Capital at start + Capital at end
/ 2
3
Q
Debt ratio =
A
Total Liabilities / Total Assets x 100
4
Q
Return on Assets =
A
Net Profit / Average Total Assets x 100
5
Q
Asset Turnover =
A
Net Sales / Average Total Assets
6
Q
Net Profit Margin =
A
Net Profit / Net Sales x 100
7
Q
Gross Profit Margin =
A
Gross Profit / Net Sales x 100
8
Q
When talking about about indicator relating to ‘turnover’ what words should be used to describe a change in the turnover?
A
Faster or slower
