Chapter 15 - Using Profitability Ratios Flashcards
1
Q
Gross profit margin
A
Gross profit/ sales revenue x 100
2
Q
Gross profit mark up
A
Gross profit/ cost of sales x 100
3
Q
Expense/ sales revenue percentage
A
Specified expenses/ sales revenue x 100
4
Q
Net profit margin
A
Profit for the year/ sales revenue x 100
5
Q
Return on capital employed
A
Profit for the year/ capital employed (capital + non current liabilities) x 100
