ratio analysis component 1 Flashcards
(4 cards)
1
Q
what is net profit margin?
A
measures how much out of every pound of sales a company keeps in earnings
2
Q
how is net profit margin calculated?
A
(net profit/sales revenue) x 100
3
Q
what is gross profit margin?
A
measures the proportion of money left over from revenue after accounting for the cost of goods sold
4
Q
how is gross profit margin calculated?
A
(gross profit/sales revenue) x 100
