Profitability Ratios Flashcards
1
Q
Equation: Gross Profit Margin %
A
Gross Profit
÷
Sales
2
Q
If single stockholder involved, how is net income defined in a firm’s ROI?
A
Net income in ROI = net income - pref divs paid
Equation: Gross Profit Margin %
Gross Profit
÷
Sales
If single stockholder involved, how is net income defined in a firm’s ROI?
Net income in ROI = net income - pref divs paid