Working Capital Ratio

current assets current liabilities

A business with $10,000 current assets and $5,000 current liabilities has 2:1

(1 dollar of liabilities for every 2 dollars of assets)

HideShow resource information
  • Created by: dansydes
  • Created on: 13-12-11 16:57

Acid Test Ratio

 ATR = (Debtors + Cash) : Current Liabilities

Debtors = $50, cash = $50, CL = $30

ATR = (50 + 50):30 = 100:30 = 10:3

1 of 2

Profit Margin

The ratio of the profit to the sales Measured per $1 of sales Gross profit margin = gross profit/Sales Rev  Gross profit margin = 100000/150000 = 0.666 = $0.67 per $1 sales Net profit margin = net profit/Sales Rev  Net profit margin = 75000/150000 = 0.5 = $0.50 per $1 sales

2 of 2

Comments

No comments have yet been made

Similar Business resources:

See all Business resources »See all resources »