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7.3. Business finance

Syllabus
0264–2027–2028
Topic
7.3
Level
—

7.3.1—Revenue

  • Revenue = Selling price per unit × number of units sold.

7.3.2—Gross profit

  • Gross profit = Revenue - cost of sales.

7.3.3—Profit

  • Profit = Total revenue - total costs, or gross profit - expenses.

7.3.4—Working capital

  • Working capital = Current assets - current liabilities.

7.3.5—Profit margin

  • Profit margin = Profit / Revenue × 100 = %.

7.3.6—Gross profit margin

  • Gross profit margin = Gross profit / Revenue × 100 = %.

7.3.7—Return on capital employed (ROCE)

  • ROCE = Profit / Capital employed × 100 = %.

Objective notes

7 learning objectives
ConceptIGCSE Business Studies