BTEC Level 3 Personal and Business Finance (Ratio Formula) Question and answer rated A+ 2023

BTEC Level 3 Personal and Business Finance (Ratio Formula) Question and answer rated A+ 2023Gross Profit Margin gross profit -------------- x 100 revenue Mark-up gross profit -------------- x 100 cost of sales Net profit margin profit ---------- x 100 revenue (ROCE) Return on capital employed profit ----------------- x 100 capital employed Current Ratio current assets ------------------ current liabilities Liquid Capital (current assets - inventory) ------------------------------- current liabilities Trade Payable Days trade payables -------------------- x 365 days credit purchases Trade Receivable Days trade receivables ---------------------- x 365 days credit sales Inventory Turnover average inventory ---------------------- x 365 days cost of sales Total Sales Revenue selling price x unit sold Contribution per unit selling price - variable cost per unit Break Even Point Fixed Costs ------------------ Contribution per unit