Finance equations

Description

Business Studies
gc131926
Flashcards by gc131926, updated more than 1 year ago
gc131926
Created by gc131926 over 10 years ago
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Resource summary

Question Answer
Gross Profit Margin Gross Profit / Sales x 100
Net Profit Margin Net Profit / Sales x 100
Return On Capital Employed Net Profit / Capital Employed (long term liabilities + shareholders funds) x 100
Current Ratio Current Assets / Current Liabilities (1.5 - 2:1)
Acid Test Ratio Current Assets - Stock/ Current Liabilities (1:1)
Debtor Days Debtors / Sales x 100
Stock Turnover Ratio Stock /Sales x 365
Gearing Ratio Loans / Capital Employed x 100 (Long Term Liabilities / Shareholders funds x 100 )
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