Trade receivables - The total amounts that a company has billed to a customer for goods or services, Inventory - The account that tracks all products that will be sold to customers., Trade payables - Money owed to suppliers for goods or services already received., Current assets - Will be converted to cash within one year. Typically, this could be cash, inventory or accounts receivable., Current liabilities - Debts or balances that need to be paid within 12 months., Cost of Goods Sold - Costs directly related to producing goods/services e.g. cost of raw materials, Purchases - The amount the business has spent on stock/raw materials for the year, Opening inventory - Value of stock/goods at the beginning of the year, Closing inventory - Value of stock/goods at the end of the year, Gross profit - Amount of money left over after cost of goods sold has been deducted from sales revenue, Sales revenue - Money received by the business from goods or services, Gross profit margin - Measures gross profit as a % of sales. Gross profit / revenue x 100, Net profit margin - Measures net profit as a % of sales. Net profit / revenue x 100, Mark up - The % added to the cost to create the selling price. Gross profit / cost of sales x 100, ROCE ( Return on capital investment) - The return on capital. Net profit before tax / capital employed x 100,

Financial Statement - Ratio Key Terms

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