Finance unit formulas Flashcards
(12 cards)
1
Q
Acid test ratio
A
current assets- stock/current liabilities
2
Q
Current ratio
A
current assets/current liabilities
3
Q
Net-cash flow
A
inflows- outflows
4
Q
Gross profit
A
sales revenue- cost of sales
5
Q
Gross profit margin
A
Gross profit/sales revenue x 100
6
Q
Net profit
A
Gross profit- expenses
7
Q
Net profit margin
A
profit before interest and tax/sales revenue x 100
8
Q
Profit
A
sales revenue- total costs
9
Q
Profit after tax
A
Net profit- tax payable
10
Q
Return on capital employed
A
profit before interest and tax/capital employed x 100
11
Q
Sales revenue
A
Price x quantity
12
Q
Working capital
A
current assets- current liabilities
