Studied by 3 people
Capital
________ employed:= (non- current assets + current assets) current liabilities or non- current liabilities + shareholders equity.
Capital employed
= (non-current assets + current assets) current liabilities or non-current liabilities + shareholders equity
Liquid assets = Current assets
Inventories
Gross profit margin, net profit margin and return on capital employed (%)
3 profitability ratios
Capital employed
(Non-current assets + current assets) current liabilities or non-current liabilities + shareholders' equity. The total capital invested in the business
Current ratio, acid test ratio and liquid assets
3 liquidity ratios
Current assets - Inventories
Liquid assets
(Gross profit / Sales revenue) x 100
Gross profit margin (%)
(Net profit / Sales revenue) x 100
Net profit margin (%)
(Net profit / Capital employed) x 100
Return on capital employed (%)
Current assets / Current liabilities
Current ratio
Liquid assets / Current liabilities
Acid test ratio
