A Level Business - Unit 3 - Decision and Strategy Latest Update
A Level Business - Unit 3 - Decision and Strategy Latest Update Acid Test Ratio - ANS-Ability of firm to meet daily expenses. (Current Assets - Inventory) / Current Liabilities Operating Profit Margin - ANS-Operating profit / sales revenue x 100 ROCE (return on capital employed) - ANS-Overall performance as a % of the LT capital invested. Operating profit / capital employed x 100 Stock Turnover - ANS-Ratio of cost of sales to inventories. Calculated: Cost of sales / inventories Receivables (debtors) days - ANS-Avg. days it takes to receive payment from customers (Receivables x 365 days) / revenue Payables (creditors) days - ANS-Avg. amount of days it takes to pay suppliers for goods purchased on credit. (Payables x 365 days) / credit purchases Gearing ratio - ANS-A measure of the percentage of capital employed that is financed by debt and long term finance. Non current liabilities / capital employed Internal business growth - ANS-Growth which takes place inside a business. From eg. Opening new branches and facilities External business growth. CONTINUES...
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- A Level Business - Unit 3 - Decision and Strategy
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- A Level Business - Unit 3 - Decision and Strategy
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- Uploaded on
- December 12, 2022
- Number of pages
- 2
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- 2022/2023
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- Exam (elaborations)
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- Questions & answers
Subjects
- acid test ratio
- operating profit margin
- stock turnover
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a level business unit 3 decision and strategy latest update 2022 2023
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roce return on capital employed
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