Profitability Ratios Flashcards
1
Q
Gross profit margin (GPM)
A
Gross profit
_____________ x 100
Sales
2
Q
Operating profit margin (OPM)
A
Operating profit
__________________ x 100
Sales
3
Q
Net profit margin
A
Net profit
_________________________________ x 100
Sales
4
Q
Return on capital employed (ROCE)
A
Operating profit
_______________________________ x 100
Shareholders funds + loans
5
Q
Return on equity (ROE)
A
Net profit
_____________________________ x 100
Shareholders funds
6
Q
Return on assets (ROA)
A
Net profit
_____________________________ x 100
Total assets
