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Teacher Resource Bank

GCE Business Studies
BUSS3 Strategies for Success
· Formulae for Financial Ratios

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Teacher Resource Bank / GCE Business Studies / BUSS3 / Version 1.1

Formulae for Financial Ratios: BUSS3

Financial ratio Formula

Current ratio current assets : current liabilities

Acid test ratio liquid assets : current liabilities
Where liquid assets are current assets ­ inventories (stock).

Return on capital employed % operating…


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