Profitability Ratios Flashcards
1
Q
Gross profit Margin
A
Gross profit
——————x100
Sales
2
Q
Net profit margin
A
Net profit
————-x100
Sales
3
Q
Return on capital employed (ROCE)
A
Net profit
————————x100
Capital employed
4
Q
Return on capital employed
A
Net profit
——————————————-x100
Total Assets - current liabilities
5
Q
Return on net assets
A
Net profit
————-x100
Net assets
6
Q
Asset turnover
A
Sales
———————
Capital employed
7
Q
‘Cost’ as a percentage of revenue
A
‘Cost’
————x100
Revenue
