business equations Flashcards
1
Q
gross profit
A
gross profit=revenue-cost of sales
2
Q
net profit
A
net profit=gross profit-(operating expenses+interest)
3
Q
average annual profit
A
total profit divided by number of years
4
Q
ARR
A
ARR=aap divided by cost of investment x100
5
Q
gross profit margin
A
GPM= gross profit divided by sales revenue x100
6
Q
net profit margin
A
NPM= net profit divided by sales revenue x100
