Profitability Ratios Flashcards
1
Q
Gross Profit Margain (%)
A
(Gross Profit / Revenue) x 100
2
Q
Gross Profit Mark-Up (%)
A
(Gross Profit / Cost of Sales) x 100
3
Q
Profit in relation to Revenue (%)
A
(Profit for the Year / Revenue) x 100
4
Q
Return on Capital Employed (Sole Trader) (%)
A
(Profit for the Year / Capital Employed) x 100
Capital Employed = Assets - Current Liabilities
5
Q
Return on Capital Employed (Limited Company) (%)
A
(Profit from Operations / Capital Employed) x 100
Capital Employed = Assets - Current Liabilities
