Question | Answer |
Gross Profit Margin | Gross Profit / Sales x 100 |
Net Profit Margin | Net Profit / Sales x 100 |
Return On Capital Employed | Net Profit / Capital Employed (long term liabilities + shareholders funds) x 100 |
Current Ratio | Current Assets / Current Liabilities (1.5 - 2:1) |
Acid Test Ratio | Current Assets - Stock/ Current Liabilities (1:1) |
Debtor Days | Debtors / Sales x 100 |
Stock Turnover Ratio | Stock /Sales x 365 |
Gearing Ratio | Loans / Capital Employed x 100 (Long Term Liabilities / Shareholders funds x 100 ) |
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