Profit and loss
This ratio measures how much of each pound of sales is left after deducting cost of goods sold.
What is the gross profit margin?
This shows the value of a business' short-term assets minus its short term liabilities.
What is working capital?
If a business has a gross profit of £40,000 and sales revenue of £200,000, calculate the gross profit margin.
What is 20%?
A business has current assets of £80,000 and current liabilities of £40,000. Calculate the current ratio.
What is 2:1?
A firm reports net profit before tax of £18,000 and revenue of £90,000. Calculate the net profit margin?
What is 20%
Given inventory of £30,000, current assets of £90,000, and current liabilities of £60,000, calculate the acid-test ratio.
What is 1:1?
A business earns gross profit of £50,000 on sales of £250,000 and incurs expenses of £30,000. Calculate its operating profit margin.
What is 8%
If total assets are £300,000 and equity is £180,000, calculate the gearing ratio.
What is 40%? (since 120,000 debt ÷ 300,000 total capital)
A company with £500,000 in total assets and £50,000 net profit reports what return on capital employed (ROCE)?
What is 10%
A business has fixed assets of £400,000, current assets of £100,000, long-term liabilities of £250,000, and current liabilities of £50,000. Calculate its net assets and equity.
What are £200,000 net assets and £200,000 equity?