Messuring Profitability Flashcards
1
Q
What is the formula for Gross Profit Margin?
A
(Gross profit / revenue) × 100
2
Q
What does Mark-up measure?
A
(Gross profit / cost of sales) × 100
3
Q
What is the formula for Net (or Operating) Profit Margin?
A
(Net (or Operating) Profit / revenue) × 100
4
Q
How is Return on Capital Employed (ROCE) calculated?
A
(Net (or Operating) Profit / Capital Employed) × 100
