finance, ratio analysis Flashcards
1
Q
how do you calculate net profit margin/
A
net profit/sales revenue X 100
2
Q
how do you calculate gross profit margin?
A
gross profit/sales revenue X 100
3
Q
how can a ratio analysis be used to assess the performance of a business?
A
- can be compared to previous years
- can be compared to competitors
- analysing reasons for increase and decrease in net/ gross profit margins
