WorksheetsBusiness 3.5 IB
Total questions: 11
Worksheet time: 9mins
What is the formula for Gross Profit Margin
(a)
What is the formula for Net Profit Margin?
(a)
What is the formula for return on capital employed?
(a)
What is the formula for Current Ratio?
(a)
What is the formula for Acid-Test or Quick Ratio
(a)
What is gross profit margin?
a way of measuring liquidity
How good at turning sales revenue to profit
A measure of the percentage of revenue left over after paying for the cost of sales
A comparison between themselves and other businesses
What is Net Profit Margin?
A liquidity test
Revenue left over after paying for the cost of sales
How good the manager is at turning sales revenue to profit
A measure of the percentage revenue left over after paying expenses
What is return on capital employed? (ROCE)
It compares the relative profitability of a business to capital employed to gain profit
a measure of the percentage of revenue left over after paying expenses
Liquid assets = currents assets - stocks
a way to test for profitability
What is the best current ratio
(1:1)
(0.5:1)
(2.1) (2)
What is a current ratio?
No guarantee that stock can be sold
How good a business is at turning sales to profit
A measure of liquidity
A comparison of current assets to current liabilities
What is an acid-test or quick ratio?
How good at turning sales into profit
A comparison of the current assets minus stocks
a way to measure how much debt is needed to be paid off.
A measure of the percentage left over
