profitability Flashcards
What are index numbers?
The base year starts at 100 increase in percentage above 100, decrease in percentage below 100
What is the equation for gross profit margin?
gross profit / revenue x 100
what is the equation for operating profit margin?
operating profit / revenue x 100
What is the equation for net profit margin?
net profit for the year / revenue x 100
What is the equation for ROCE?
operating profit / capital employed x 100
how do you work out gross profit net profit etc
revenue - cogs
what is an income statement?
it measures the businesses performance over time. compares the income against costs of goods and expenses
what is a balance sheet?
snapshot of businesses assets and liabilities on one day
what is a cash flow statement?
how a business has generated and exposed of cash
