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money coming from owner of business, including retained profit) are calculated.
Then Long-term liabilities (I.e. Liabilities that will take over a year to pay off, e.g. Bank loans) are calculated.
Profit added to starting capital gives Capital Employed.
Capital Employed and Net Assets should be balanced...
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It is calculated by dividing gross profit by sales. I.e.
_Gross profit_
Net Profit Margin = Sales Turnover
Net profit margin
Net profit margin shows how much net profit is made in percentage to sales turnover. It is calculated in the same way as gross profit. I.e.
__Net profit__
Gross Profit Margin = Sales Turnover
Return on capital employed (ROCE)
ROCE shows how much profit is made as a proportion to capital employed...
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