Profitability Ratios Flashcards
1
Q
Gross profit margin
A
Gross profit/sales
2
Q
Operating profit margin
A
Operating profit/sales
3
Q
Net profit margin
A
Profit after tax/sales
4
Q
Net asset turnover
A
Sales/average total assets
5
Q
Return on assets (ROA)
A
Profit after tax/average total assets
6
Q
ROCE (return on capital employed) - 1
A
Operating profit/average invested capital
7
Q
ROCE (return on capital employed) - 2
A
Operating profit/average (total assets-CL)
8
Q
ROCE (return on capital employed) - 3
A
Operating profit/average (equity + NCL)
