The difference between the income of a business and its total costs. Revenue-total costs
Profit
1 of 6
The ability of a business to generate profit of the efficiency of a business in generating profit
Profitability
2 of 6
This measures net profit (operating profit can be used) as a percentage of sales. Net and operating profits are considered the best measure of a firms profit while sales turnover is an excellent measure of scale
Net profit margin
3 of 6
Ratio showing net profit (operating profit can also be used) as a percentage of capital invested
Return on capital employed
4 of 6
All of the money provided to the business by owners
Capital invested
5 of 6
The ability to convert assets into cash without loss or delay
Liquidity
6 of 6
Other cards in this set
Card 2
Front
The ability of a business to generate profit of the efficiency of a business in generating profit
Back
Profitability
Card 3
Front
This measures net profit (operating profit can be used) as a percentage of sales. Net and operating profits are considered the best measure of a firms profit while sales turnover is an excellent measure of scale
Back
Card 4
Front
Ratio showing net profit (operating profit can also be used) as a percentage of capital invested
Back
Card 5
Front
All of the money provided to the business by owners
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