F3: Ratios- measuring profitability Flashcards
1
Q
Gross profit margin=
A
Gross profit/Revenue x 100
2
Q
Revenue can also be known as…
A
sales or turnover
3
Q
Net profit margin=
A
Net profit/Revenue x 100
4
Q
mark-up=
A
gross profit/COGS x 100
5
Q
Return on Capital Employed (ROCE)=
A
Net profit/capital employed x 100
6
Q
capital employed=
A
total assets-current liabilities
7
Q
A
