Unit 6 - Calculations Flashcards
1
Q
Average rate of return
A
Average yearly profit/cost of investment x 100
ARR - compares the average yearly profit from an investment and is stated as a percentage.
2
Q
Gross profit
A
Revenue - costs
3
Q
Net profit
A
Gross profit - expenses
4
Q
Gross profit margin
A
Gross profit/sales revenue x 100
5
Q
Net profit margin
A
Net profit/sales revenue x 100
