Answers Given As A %

Question 1

Gross profit margin

Answer 1

Gross profit
——————- X100
Sales revenue

Question 2

Operating profit margin

Answer 2

Operating profit
———————— X100
Sales revenue

Question 3

ROCE

Answer 3

Operating profit
———————— x100
Capital employed

Question 4

Market share

Answer 4

Total sales of business
——————————— X100
Total sales of industry

Question 5

Labour turnover

Answer 5

Number of staff left in 1yr
————————————- X100
Average number of people employed

Question 6

Absenteeism

Answer 6

No. Of staff absent
——————————— X100
Total no. Of employees

Question 7

Gearing

Answer 7

Non current liabilities
———————————- X100
Shareholder equity+ NCL

Question 8

Net profit margin

Answer 8

Profit for the year
————————- X100
Sales revenue

Question 9

Capacity utilisation

Answer 9

Actual level of output
———————————— X100
Maximum possible output

Question 10

Average rate of return

Answer 10

Net return from the investment
———————————————- X100
Initial costs

Question 11

Labour retention

Answer 11

Number of employees remaining over a period of time
—————————————————————————- X 100
Average number of people employed over same period