profitability ratios Flashcards
1
Q
Return On Capital Employed (ROCE)
A
(profit before tax and interest / long term capital employed) X 100
2
Q
Gross Profit Margin
A
(gross profit / turnover) X 100
3
Q
Net Profit Margin
A
(net profit / turnover) X 100
4
Q
Return on Equity
A
Net profit / equity
