Profit Flashcards
1
Q
Profit definition
A
The financial gain of a business through trading and can be found by deducting expenditure from income
2
Q
Profit calculation
A
Profit = total revenue - total costs
3
Q
Gross profit calculation
A
Gross profit = sales revenue - cost of sales
4
Q
Operating profit calculation
A
Operating profit = gross profit - expenses
5
Q
Profit for the year (net profit) calculation
A
Profit for the year = operating profit- interest
6
Q
GP margins calculation
A
GP = gross profit
—————— X 100
Sales revenue
7
Q
OP margin
A
OP = operating profit
———————- X100
Sales revenue
8
Q
NP margin
A
NP= Net profit
——————— X 100
Sales revenue
