Vol. 3 LM1 Income Statement Ratios Flashcards
1
Q
alternate names
net profit margin
p 45
A
- profit margin
- return on sales
2
Q
Calculate
net profit margin
A
numerator: net income
denominator: revenue
3
Q
define
net profit margin
p 45
A
measures the amount of income that a company was able to generate for each dollar of revenue
4
Q
define
gross profit margin
p 45
A
numerator: gross profit
denominator: revenue
5
Q
describe
gross profit margin
p 45
A
measures the amount of gross profit that a company generated for each dollar of revenue
6
Q
describe
operating profit margin
p 46
A
profit from operations divided by revenue
7
Q
describe
pretax margin
p 46
A
profit before tax divided by revenue
