Profitability Ratios Flashcards

1
Q

Gross profit margin

A

Gross profit / revenue x 100

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2
Q

Mark-up

A

Gross profit / cost of sales x 100

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3
Q

Net profit margin

A

Net profit / revenue x 100

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4
Q

Return on capital employed ROCE

A

Net profit before tax and interest / capital employed x 100

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