Analysing Financial Performance- formulas

0.0(0)
studied byStudied by 1 person
learnLearn
examPractice Test
spaced repetitionSpaced Repetition
heart puzzleMatch
flashcardsFlashcards
Card Sorting

1/9

flashcard set

Earn XP

Description and Tags

A-Level Business

WJEC

Study Analytics
Name
Mastery
Learn
Test
Matching
Spaced

No study sessions yet.

10 Terms

1
New cards

Current ratio formula

Current assets/current liabilities =

2
New cards

Acid Test Ratio formula

(Current assets- stock)/current liabilities

3
New cards

Gearing formula

long term liabilities/ capital employed x 100

4
New cards

Gross Profit Margin

Gross Profit/revenue x 100 =%

5
New cards

Net profit margin

Net profit/ revenue x 100= %

6
New cards

ROCE

Net profit before tax/ capital employed x 100= %

7
New cards

Variance

Actual figure - budgeted figure = £

8
New cards

Working capital

Current assets - current liabilities =£

9
New cards

What are the liquidity ratios?

  • Current ratio

  • Acid test ratio

  • Gearing ratio (thus is a debt ratio)

10
New cards

What are the profitability ratios?

  • Gross profit margin

  • Net profit Margin

  • ROCE