Profitability Flashcards
1
Q
Gross profit on cost of sales
A
(Gross profit / Cost of sales) * 100
2
Q
Gross profit in sales (turnover)
A
(Gross profit / Sales) * 100
3
Q
Operating profit on sales (turnover)
A
(Operating Profit / Sales) * 100
Operating profit (EBIT) = Sales - debtors allowance - cost of sales + operating income - operating expenses
4
Q
Net profit on sales (turnover)
A
(Net profit after tax / sales) * 100
Net profit after tax = sales -
cost of sales + other income - other expenses + interest income - interest expense
5
Q
Operating expenses on sales
A
(Operating expenses / Sales) * 100
