Finance- Measuring And Increasing Profit

Question 0

ROCE

Answer 0

Return On Capital Employed

Question 1

Profitability ratios

Answer 1

• ROCE
• gross profit margin(%)
• net profit margin(%)

Question 2

Methods of increasing profitability

Answer 2

• switch suppliers and reduce variable costs.
• reduce fixed costs by reducing expenses
• alter price, depending on the price elasticity of demand, while costs remain constant

Question 3

Difference between cash and profit

Answer 3

• cash flow is about the short-term cash coming into and out of the business
• profits are long term