Profitability Ratios Flashcards

1
Q

Gross profit margin

A

Gross profit / revenue x 100

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2
Q

Net profit margin

A

Net profit / revenue x 100

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3
Q

Mark up

A

Gross profit / cost of sales x 100

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4
Q

ROCE

A

Net profit / (Total equity + non current liabilities) x 100

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