business ratios

  • Created by: 13childt
  • Created on: 26-02-18 10:27
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  • ratios
    • profitability
      • higher the better (in general
      • return on capital employed
      • net profit margin
      • gross profit margin
    • liquidity
      • current ratio
      • ideally 1:5:1
      • acid test ratio
    • current ratio=current assets/current liabilities
    • acid test ratios= current assets-stock/current liabilities
    • gross profit margin= gross profit x 100/ sales turnover
    • net profit margin=net profit x 100/sales turnover

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