formulas Flashcards
1
Q
how to calculate Gross profit margin
A
Gross profit margin = (gross profit ÷ sales revenue) x 100
The answer will be shown as a percentage
2
Q
how to calculate Net profit margin
A
Net profit margin = (net profit ÷ sales revenue) x 100
The answer will be shown as a percentage
3
Q
Current ratio formula
A
Current ratio = current assets ÷ Current liabilities
4
Q
Liquid capital ratio formula
A
liquid capital ratio = (current assets – inventory) ÷ current liabilities
5
Q
Liquidity ratios
A
Current:liquid
