Finance Formulas Flashcards
1
Q
Gross Margin - %
A
Expressed as a %
=revenue-cost of goods sold/revenue
It’s the % of each dollar a company retains on each dollar of sale.
2
Q
Profit Margin %
A
expressed as a %
profit/revenue
It’s how much out of every dollar of sales a company actually keeps in earnings
3
Q
Return on Ad Spend (ROAS)
A
revenue/spend
4
Q
Return on Investment (ROI)
A
expressed as a %
revenue - cost/cost
5
Q
Gross Profit
A
revenue - cost of goods sold
or
revenue x profit margin
6
Q
Operating Margin
A
operating income/Net sales
gives you an idea of how much money a company makes on each dollar after removing operating cost. (before taxes and interest)
