finance equations Flashcards
1
Q
gross profit
A
revenue-cost of goods sold
2
Q
net profit
A
gross profit-expenses+non trading income
3
Q
retained profit
A
net profit-tax-dividends
4
Q
equity
A
1)total assets-total liabilities
2)share capital+profit or loss
5
Q
capital employed
A
equity+non current liabilities
6
Q
working capital
A
current assets-current liabilities
7
Q
roce
A
net profit/capital employed x100
8
Q
gpm
A
gross profit/revenue x100
9
Q
npm
A
net profit/revenue x100
10
Q
current ratio
A
ca/cl
11
Q
gearing ratio
A
ncl/capital employed x100
12
Q
acid test ratio
A
ca-inventory / cl
