Statement Of Financial Position Key Words Flashcards
1
Q
Gross profit margin
A
Shows the gross profit made on sales
2
Q
Operating profit margin
A
Shows the operating profit made on sales revenue/turnover. It is used to measure accompanies pricing strategy
and operating efficiency. It gives an idea of how much a company makes.
3
Q
Profit for the year margin (net profit)
A
It takes into account all business costs including interest, all non-operating costs and exceptional items
