BTEC level 3 Diploma in Business Unit 5 Business Accountnn Daniil Chernat
Usinn rato analysis
Profitability the amountt of montey earnted by a busiintesisi afer payint for itsi sitock sckoasit sialesi antd
expentsiesi).
Grosisi profit mar int s rosisi profit to sialesi rato). GPM = Grosisi profittturntover ssialesi) x 100 =? %
SSl 2013 335000t1150000 x 100 = 29,1 %
Showsi the perckentta e of sialesi reventue whickh isi rosisi profit
A hi h perckentta e intdickatesi relatvely low ckosit of sialesi ckompared to turntover
I ntoresi intdireckt ckosit soverheadsi)
Net Profit Mar int sntet profit to sialesi rato). NPN = ntet profittturntover x 100 =? %
SSl 2013 89575t1150000 = 7.8 %
Showsi the perckentta e of sialesi reventue whickh isi met profit
A hi h perckentta e intdickatesi that the busiintesisi hasi a t ht ckonttrol over ckosit
Intckludesi all busiintesisi ckositsi sdireckt antd intdireckt) antd isi thusi more usieful thant GPM
If rosisi profit isi hi h but ntet profit mar int isi low, isi sihowsi that expentsiesi are to hi h.
Returnt to the ckapital Employed sROCE). ROCE = ntet profittckapital employed x 100 =? %
SSl 2013 ROCE = 89575t195600 = 45.7%
A hi h perckentta e intdickatesi that the busiintesisi isi well manta ed
Needsi to be ckompared with previousi yearsi to siimilar busiintesisiesi
Should be hi her thant intteresit rate ont siavint si beint ofered by bant or buildint siockiety
Expresisied asi perckentta e
Liquidity loo si at a firmmsi ability to pay itsi debtsi. The fasiter ant asisiet ckant be turnted intto ckasih, the more
‘liquidm it isi.
Currentt rato - ckurrentt asisietsitckurrentt liabilitesi =? : 1
SSl 2013 Currentt rato - 110600t55000 = 2.01: 1
1
Usinn rato analysis
Profitability the amountt of montey earnted by a busiintesisi afer payint for itsi sitock sckoasit sialesi antd
expentsiesi).
Grosisi profit mar int s rosisi profit to sialesi rato). GPM = Grosisi profittturntover ssialesi) x 100 =? %
SSl 2013 335000t1150000 x 100 = 29,1 %
Showsi the perckentta e of sialesi reventue whickh isi rosisi profit
A hi h perckentta e intdickatesi relatvely low ckosit of sialesi ckompared to turntover
I ntoresi intdireckt ckosit soverheadsi)
Net Profit Mar int sntet profit to sialesi rato). NPN = ntet profittturntover x 100 =? %
SSl 2013 89575t1150000 = 7.8 %
Showsi the perckentta e of sialesi reventue whickh isi met profit
A hi h perckentta e intdickatesi that the busiintesisi hasi a t ht ckonttrol over ckosit
Intckludesi all busiintesisi ckositsi sdireckt antd intdireckt) antd isi thusi more usieful thant GPM
If rosisi profit isi hi h but ntet profit mar int isi low, isi sihowsi that expentsiesi are to hi h.
Returnt to the ckapital Employed sROCE). ROCE = ntet profittckapital employed x 100 =? %
SSl 2013 ROCE = 89575t195600 = 45.7%
A hi h perckentta e intdickatesi that the busiintesisi isi well manta ed
Needsi to be ckompared with previousi yearsi to siimilar busiintesisiesi
Should be hi her thant intteresit rate ont siavint si beint ofered by bant or buildint siockiety
Expresisied asi perckentta e
Liquidity loo si at a firmmsi ability to pay itsi debtsi. The fasiter ant asisiet ckant be turnted intto ckasih, the more
‘liquidm it isi.
Currentt rato - ckurrentt asisietsitckurrentt liabilitesi =? : 1
SSl 2013 Currentt rato - 110600t55000 = 2.01: 1
1
