Measuring Profitability Flashcards

(4 cards)

1
Q

Gross profit margin equation

A

(Gross profit / revenue) x 100

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2
Q

Gross profit mark up equation

A

(Gross profit / cost of sales) x 100

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3
Q

Profit margin equation

A

(Profit / revenue) x 100

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4
Q

Return on capital employed equation

A

(Profit / capital employed) x 100

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