Formulas Flashcards by Ali Jan

Q

Formula for gross profit margin

A

(GROSS PROFIT/ REVENUE) x100

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Q

Formula for profit

A

REVENUE- EXPENSES

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Q

Formula for current ratio

A

CURRENT ASSETS/ CURRENT LIABILITIES

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Q

Liquid capital ratio

A

CURRENT ASSETS - INVENTORY / CURRENT LIABILITIES

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Q

Profit margin

A

(NET PROFIT / REVENUE) x100

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Q

Trade receivable days

A

(ACCOUNTS RECEIVABLE/ TOTAL CREDIT SALES) x365

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