jump to content of this page Bized logo linked to homepage
Bookmark and Share

Profitability, Solvency and Performance Ratios Test

The test is based upon the information held in Pepe's Pizza Parlour. The test is of your understanding of the performance ratios. If you want to refresh your memory go back to the profitability, solvency and performance ratios page

Slice of pizza

Return on Capital Employed (ROCE)

Net Profit (before interest & tax) / Capital Employed x 100 = ROCE
__________________

__________________

__________________

Slice of pizza

Gross Profit Margin

Gross Profit / Sales x 100 = Gross Profit margin
__________________

__________________

__________________

Slice of pizza

Net Profit Margin

Net Profit / Sales x 100 = Net Profit margin
__________________

__________________

__________________


Slice of pizza

Liquidity Ratio (or Acid test)

Liquid assets / Current liabilities = Acid test
__________________

__________________

__________________


Slice of pizza

Current Ratio

Current assets / Current liabilities = Current ratio
__________________

__________________

__________________


Slice of pizza

Gearing (income gearing)

Interest / Profit = Income gearing (%)
__________________

__________________

__________________

Do you want to see the answers? Don't forget to print this page so that you can see how you did!