Profitability Ratios Flashcards
1
Q
Income Statement=
A
Measures the business performance over a given period of time (usually a year)
2
Q
Gross Profit Margin=
A
Gross Profit
—————— TIMES 100
Sales revenue
3
Q
Net Profit Margin=
A
Net Profit
————— TIMES 100
Sales
4
Q
ROCE=
(Return on capital employed)
A
Operating Profit(or net profit)
——————————————- TIMES 100
Total equity+Non-Current liabilities
5
Q
Return on Equity=
A
Net Profit
————— TIMES 100
Total equity
