Accounting Ratios (Profitability) Flashcards
1
Q
Return On Capital Employed
A
Net Profit + Interest / Capital employed x 100
2
Q
Return On Shareholder Equity
A
Net Profit (After Pref Dividend) / Capital Employed-Minus debt(%) x 100
3
Q
Gross Profit Margin
A
Gross Profit/ Sales x 100 Gross Profit = Sales minus cost of goods sold
4
Q
Net Profit Margin
A
Net Profit / Sales x 100+
5
Q
Preference Dividend(Startup)
A
Preference Shares (Number x %)
6
Q
Ordinary Dividend
A
Dividends paid - pref dividend
