Profitability ratios Flashcards
1
Q
Gross Profit margin
A
Gross Profit / Revenue * 100
2
Q
Net profit Margin
A
Net profit / Revenue * 100
3
Q
Return on capital employed
A
Profit before interest and tax / total assets - current liabilities
4
Q
Return on investment
A
Average profit / average investment * 100
5
Q
Return on equity
A
Net income attributable to equity shareholders / equity * 100
6
Q
Return on assets
A
Net profit after tax / total assets * 100
7
Q
Current ratio
A
CA / CL : 1
8
Q
Acid test
A
CA - inventories / CL : 1
