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. Profitability: Net Profit Margin

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

3. Activity: Stock Turnover

  • (Debtors ÷ Sales Revenue) X 365
  • Cost of Sales ÷ Stock
  • Current Assets - Stock ÷ Current Liabilities
  • Sales Revenue ÷ Fixed Assets

4. Profitability: Return on Equity

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

5. Liquidity: Acid Test

  • Current Assets ÷ Current Liabilities
  • (Net Profit ÷ Revenue) X 100
  • Current Assets - Stock ÷ Current Liabilities
  • Sales Revenue ÷ Fixed Assets

Comments

No comments have yet been made

Similar Business Studies resources:

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