Profitability ratios formulas Flashcards
1
Q
Gross Profit Margin (%)
A
Gross Profit / Revenue × 100
2
Q
G.P mark up
A
Gross Profit / Cost of Sales × 100
3
Q
net Profit Margin (%)
A
Profit for the Year / Revenue × 100
4
Q
Return on Capital Employed (ROCE) (%)
A
Profit from Operations / Capital Employed × 100
5
Q
Expenses to Revenue Ratio (%)
A
Expenses / Revenue × 100
6
Q
Operating Expenses to Revenue Ratio (%)
A
Operating Expenses / Revenue × 100
7
Q
Capital Employed
A
= Issued Share Capital + Reserves + Non-current Liabilities
8
Q
Return on equity
A
profit for year(after preference dividends)/equity x 100
9
Q
return on total assets
A
Profit before interest and tax/total assets x100
10
Q
NCA turnover
A
net sales/NCA x 100
