1. Profitability Ratios (1-4)
Studied by 0 people
Call with Kai
Learn
Practice Test
Spaced Repetition
Match
Flashcards
Knowt Play1/8
There's no tags or description
Looks like no tags are added yet.
Name | Mastery | Learn | Test | Matching | Spaced | Call with Kai |
|---|
No study sessions yet.
9 Terms
What does the Return on Ordinary Shareholders funds (ROSF) ratio show
Shows return generated for shareholders from their investment
What is the formula for the Return on Ordinary Shareholders funds ratio
Net profit after tax / average ordinary share capital & reserves x 100
What does the Return on Capital Employed (ROCE) ratio show
Measures efficiency of long-term capital in generating profit
What is the formula for the Return on Capital Employed ratio
Operating profit / capital employed x 100
How do you work out capital employed
Capital employed = equity + long-term borrowings
What is Gross Profit Margin (GPM)
Shows the margin earned after deducting costs of sales
What is the Gross Profit Margin formula
Gross profit / sales revenue x 100
What is Operating Profit Margin (OPM)
Shows how much a company can make from its core business operations
What is the formula of operating profit margin
Operating profit / sales revenue x 100
Note 
Flashcards (30)