Ch.23- Analysis of accounts Flashcards
1
Q
Gross profit margin %
A
Ration between gross profit and revenue
2
Q
Profit margin %
A
Ration between profit before tax and revenue
3
Q
Adding value
A
Selling a product for more than it cost to produce it
4
Q
Return on capital employed (ROCE)
A
Ratio between profit before tax and capital employed
5
Q
Liquidity
A
The ability of a business to pay its short-term debts
6
Q
Current ratio
A
Ratio between current assets and current liabilities
7
Q
Acid test ratio
A
Ratio between liquid assets and current liabilities
