Profitability Ratios Flashcards
1
Q
PBIT is also known as
A
Operating Profit
2
Q
Sales is also known as
A
Revenue
3
Q
ROCE is
A
Return on Capital Employed
4
Q
ROI is
A
Return on Investment
5
Q
RI is
A
Residual Income
6
Q
Gross Profit=
A
Sales - Cost of Sales (CoS)
7
Q
Gross Profit Margin (%)
A
Gross Profit/Sales * 100%
8
Q
Net Profit Margin (%)
A
PBIT/Sales * 100%
9
Q
Market Share (%)
A
Sales/Total Industry Sales * 100%
10
Q
Asset Turnover (Times)
A
Sales/Capital Employed
11
Q
Capital Employed ($)
A
Assets - Current Liabilities
12
Q
Alternative Capital Employed formula ($)
A
Long Term Liabilities + Shareholder’s Funds + Reserves
13
Q
ROCE/ROI (%)
A
PBIT/Capital Employed * 100%
14
Q
RI ($)
A
PBIT - Capital Employed * Notional Interest
15
Q
Operating profit margin (if not listed)
A
ROCE/Asset Turnover
