Session 41 and 42 - profit Flashcards
1
Q
What is the formula for gross profit
A
Revenues - cost of sales
2
Q
What is the formula for operating profit
A
Gross profit - expenses and overheads
3
Q
What is the formula for net profit (profit of the year)
A
Operating profit - interest and tax
4
Q
What is the formula for gross profit margin (%)
A
(Gross profit / sales revenue) x 100
5
Q
What is the formula for operating profit margin (%)
A
(Operating profit / sales revenue) x100
6
Q
Define ratio analysis
A
Analysing relationships between financial data to assess the performance of a business
7
Q
A
