418608
| Question | Answer |
| Return on capital employed (ROCE) | (Net Profit (before Interest and tax) / Capital Employed) x 100 |
| Gross profit margin | (gross profit/sales)x100 |
| Net profit margin | (Net profit/sales)X100 |
| Acid test | Liquid assets / Current liabilities. Stock is not a liquid asset. |
| Current ratio | Current assets / Current liabilities |
| Stock turnover | (Average stock / Cost of goods sold) x 365 |
| Debtor days | Debtors / Average daily sales (Sales divided by 365) |
| Gearing | (Interest / Profit) x 100 Therefore a company with interest payments of £35,000 whilst earning £50,000 would have the following gearing ratio: (35,000 / 50,000) x 100 = 70% |
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