Profitability Flashcards
1
Q
Gross profit
A
Revenue - cos
2
Q
Gross profit margin
A
Gross profit/revenue x 100
3
Q
Operating profit
A
Gross profit - operating expenses
4
Q
Operating profit margin
A
Operating profit/revenue x 100
5
Q
ROCE
A
Operating profit/ capital employed x100
CE = total assets-current liabilities
Wants to be higher- how much investors get back
6
Q
Profit of the year
A
Operating profit - interest
