Profitablity Ratios Flashcards by Cammy McKinley

Q

Gross Profit Percentage (PR)

Q. How much profit a business makes before expenses

A

Gross profit / sales

x100

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Q

Profit for the year %
(PR)

Q. How much profit a business makes after expenses

A

Profit for the year / sales

x100

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Q

Return on equity
(PR)

Q. Measures how well a business uses investors cash

A

Profit for the year / equity

x100

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