Measuring Profitability Flashcards
1
Q
Gross profit margin
A
(Gross profit ÷ revenue) X 100
2
Q
Markup
A
(Gross profit ÷ cost of sales) X 100
3
Q
Net profit margin
A
(Net profit ÷ cost of sales) X 100
4
Q
Return of capital employed
ROCE
A
(Net profit ÷ capital employed) X 100