Ratio 0.0 / 5 ? Business StudiesProfitGCSEEdexcel Created by: 13ryanaCreated on: 27-02-18 11:15 How do you work out the gross profit margin gross profit/ sales revenue x 100 1 of 15 How do you work out the net profit margin net profit/ sales revenue x 100 2 of 15 How do you work out the return capital employed Net profit/ Capital Employed x 100 3 of 15 How do you work out current ratio Current assets/ current liabilities 4 of 15 What does gross profit show Gross profit for £1 of sales. The bigger the % the greater the profit 5 of 15 What does net profit show As above, but allowing for fixed costs 6 of 15 What does return capital employed (ROCE) show Profit created from each £1 invested 7 of 15 What does current ratio show How easily a firm's short - term debts can be paid from current assets 8 of 15 How do you work out acid test ratio? Current assets - stock/ current liabilities 9 of 15 What does acid test ratio show ? Removes stock from the equation to give a more realistic measure 10 of 15 Who is interested in the gross profit ? Managers - how is the firm performing ?, Creditors - will loans be repaid? 11 of 15 Who is interested in net profit margin ? Stakeholders want to know if the business is making profit 12 of 15 Who is interested in return on capital employed (ROCE) Shareholders - is investment providing as good a return as other options 13 of 15 Who is interested in current ratio Managers, creditors - how easily can the firms debts be covered? 14 of 15 Who is interested in acid ratio test Managers, creditors - how easily can the firms debts be covered? 15 of 15
Business Studies - Section Eight - Analysis of Accounts 5.0 / 5 based on 1 rating Teacher recommended
Comments
No comments have yet been made