business 0.0 / 5 ? Business StudiesBusiness PlansA2/A-levelAQA Created by: olivia shawCreated on: 14-01-14 14:17 capital employed = debt + equity (cover bottom) EST at end of activity - (EST + duration of activity) 1 of 19 Gross profit margin (PROFITABILITY) gross profit / revenue x 100 2 of 19 Net profit margin (PROFITABILITY) net profit / revenue x 100 3 of 19 ROCE (return on capital employed) (PROFITABILITY) profit before intrest and tax / capital employed x 100 4 of 19 Return on equity net profit / equity x100 5 of 19 Liquidity Ability of a business to cover its short term debts 6 of 19 Working capital (net current assets) (LIQUIDITY) current assests - current liabilities 7 of 19 Current ratio (LIQUIDITY) current assets / current liabilities 8 of 19 Acid Test (LIQUIDITY) current assets - stock / current liabilities 9 of 19 Stock days (EFFICIENCY) cost of stock / cost of sales x 365 10 of 19 debtor days (EFFICIENCY) debtors / revenue x365 11 of 19 Creditor days (EFFICIENCY) creditors / purchases x 365 12 of 19 Gearing (SOLVENCY) long term liabilities / capital employed x 100 (looking for lower %) 13 of 19 Debt to equity (SOLVENCY) Debt / Equity ( equity is retained profits and shares) 14 of 19 Intrest Cover (SOLVENCY) profit before interest and tax / interest expense( less than 1 cant pay it back) 15 of 19 Dividends per share (INVESTMENT) dividend / number of shares 16 of 19 Dividend yield (INVESTMENT) Dividends per share / market price x 100 17 of 19 earnings per share (INVESTMENT) net profit / no. of shares in issue 18 of 19 Profit before intrest and tax profit before taxation + intrest 19 of 19
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