Measuring Profitability Flashcards

1
Q

Gross profit margin

A

(Gross profit ÷ revenue) X 100

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2
Q

Markup

A

(Gross profit ÷ cost of sales) X 100

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3
Q

Net profit margin

A

(Net profit ÷ cost of sales) X 100

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4
Q

Return of capital employed

ROCE

A

(Net profit ÷ capital employed) X 100

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