Profitability Flashcards
1
Q
Gross Profit Margin
A
Gross Profit/Revenue x 100
Shows percentage of profit from sales
2
Q
Operating Profit Margin
A
Operating Profit/Revenue x 100
Shows the percentage of profits left after overheads have been paid
3
Q
Net Profit Margin
A
Net Profit/Revenue x 100
Shows the percentage of profit left over after all costs have been deducted
4
Q
Profit
A
Total Revenue - Total Coasts
5
Q
Gross Profit
A
Total revenue - Variable Costs
6
Q
Operating Profit
A
Gross Profit - Fixed Costs
7
Q
Profit for the year
A
Operating Profit - Interest & Tax paid
Total Revenue - VC - FC - Tax - Interest
8
Q
Total Revenue
A
Selling price x quantity sold
9
Q
Net assets
A
Total assets - total liabilities
