Calculations

Question 1

Gross profit margin

Answer 1

= Gross Profit/Revenue x100

Question 2

Profit for the year (net profit margin)

Answer 2

= Profit for the year/Revenue x100

Question 3

ROCE

Answer 3

Operating Profit/Capital employed x100

Question 4

Current Ratio

Answer 4

Current Assets/Current Liabilities

Question 5

Capacity Utilisation

Answer 5

Current Output/Maximum Output x100

Question 6

Market Share

Answer 6

Sales/Total market sales x100

Question 7

PED

Answer 7

% in Demand / % in Price

Question 8

YED

Answer 8

% in Demand / % in income

Question 9

ARR

Answer 9

Net Return (per year)/Initial Investment x100

Question 10

Operating Profit Margin

Answer 10

Operating Profit/Revenue x100

Question 11

Capital employed

Answer 11

Non Current Liabilities + Total Equity (Assets + cash)

Question 12

Gearing Ratio

Answer 12

Non-Current Liabilities/Capital employed x100

Question 13

Acid Test Ratio

Answer 13

(Current assets - Inventory)/Current liabilities

Question 14

Variance

Answer 14

Actual value - Budgeted Value

Question 15

Contribution Per Unit

Answer 15

Price - VCost per Unit

Question 16

Break Even Output

Answer 16

Fixed Costs/(Price - VCost per Unit)

Question 17

Margin of Safety

Answer 17

Actual Sales - Breakeven output.

Question 18

Gross Profit

Answer 18

Total Revenue - Total Costs

Question 19

Operating Profit

Answer 19

Gross profit - Operating costs

Question 20

Profit of the year

Answer 20

Operating Profit - Any other costs