Ratio equations

Question	Answer
Current ratio	Current assets/ current liabilities
Gross Profit margin	Gross profit/ sales revenue x 100
GearING	NON CURRENT LIABILITES/CAPITAL EMPLOYED X100
Operating profit	Gross profit- other expenses
Acid test	current assets- inventory/ current liabilities
Return on capital employed (ROCE)	Operating profit/ capital employed x 100
Operating profit margin	operating profit/ sales revenue x 100
Labour productivity	Total output / no. of workers
Abesenteeism	Work days lost/ total possible days worked x 100
Labour turnover	no. of employees leaving/ average no. of employees x 100
Total equity	Shareholder capital+Retained profit
Profit for the year	Profit for the year/ sales revenue x 100
Capital employed	Total assets- capital employed
Sales revenue	Quantity x price
Working capital	Current assets - current liabilites
Net assets	Total assets - total liabilities
Gross profit	Sales revenue - cost of sales

Resource summary

	Created by Joshua Ali Bakhsh Asher over 1 year ago