Business Formulas

HideShow resource information

1. Profitability: Return on Capital Employed

  • (Operating Profit ÷ Creditors after one year + Net Assets Employed) X 100
  • (Net Profit ÷ Revenue) X 100
  • (Operating Profit ÷ Revenue + Creditors after one year) X 100
  • (Operating Profit ÷ Gross Profit - Net profit) X 100
1 of 11

Other questions in this quiz

2. Solvency: Gearing Ratio

  • (Creditors after one year ÷ Creditors after one year+net assets employed) X 100
  • Cost of Sales ÷ Stock
  • Current Assets ÷ Current Liabilities
  • (Profit before tax + Interest) ÷ Interest

3. Profitability: Gross Profit Margin

  • (Gross Profit ÷ Revenue) X 100
  • (Gross Profit + Revenue) X 100
  • (Gross Profit ÷ Operating Profit) X 100
  • (Gross Profit ÷ Net Profit) X 100

4. Profitability: Return on Equity

  • (Gross Profit - Equity Shareholders Funds ÷ Current Assets) X 100
  • (Gross Profit ÷ Equity Shareholders Funds) X 100
  • (Net Profit ÷ Equity Shareholders Funds) X 100
  • (Net Profit + Revenue ÷ Equity Shareholders Funds) X 100

5. Activity: Fixed Asset Turnover

  • (Fixed Assets + Sales Revenue) X 365
  • Sales Revenue ÷ Fixed Assets
  • (Sales Revenue ÷ Fixed Assets) X 100
  • (Fixed Assets - Stock Turnover) ÷ 365

Comments

No comments have yet been made

Similar Business Studies resources:

See all Business Studies resources »See all People in organisations resources »