Profitability Ratios Flashcards

(5 cards)

1
Q

Gross Profit Margin

A

Gross Profit/Sales X 100

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2
Q

Operating Profit Margin

A

PBIAT/ Revenue X 100

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3
Q

Return on Capital Employed (ROCE)

A

PBIAT/ Capital employed (Total assets - Current Liabilities)

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4
Q

Return on Equity (ROE)

A

Profit after tax - pre dividends / equity

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5
Q
A
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