Business Formulas

HideShow resource information

1. Liquidity: Current Ratio

  • Current Assets ÷ Current Liabilities
  • (Net Profit ÷ Revenue) X 100
  • (Operating Profit ÷ Creditors after one year + Net Assets Employed) X100
  • Current Assets - Stock ÷ Current Liabilities
1 of 11

Other questions in this quiz

2. Liquidity: Acid Test

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

3. 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

4. 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

5. Activity: Debtor Turnover

  • (Debtors ÷ Sales Revenue) X 365
  • (Sales Revenue ÷ Debtor) X100
  • Sales Revenue ÷ Fixed Assets
  • Debtors ÷ 365

Comments

No comments have yet been made

Similar Business Studies resources:

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