Formulaes Flashcards
(6 cards)
1
Q
Gross profit margin:
A
Gross profit = revenue - cost of sales
Gross profit margin = (gross profit/ revenue) * 100
2
Q
Operating profit margin:
A
Operating profit = gross profit - other operating expenses
Operating profit margin = (operating profit/revenue) * 100
3
Q
Markup:
A
Markup = (profit per item/cost per item) * 100
4
Q
Return on capital employed (ROCE):
A
ROCE = (operating profit/capital employed) * 100
5
Q
Current ratio:
A
Current ratio = (current assets/current liabilities)
6
Q
Acid test ratio:
A
Acid test ratio = (current assets - inventory)/current liabilities
