Profitability Ratios Accounting

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4 Terms

1
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Return on capital employed

net profit before interest and tax X 100


capital employed

<p>net profit before interest and tax X 100 </p><hr><p>capital employed </p>
2
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GROSS PROFIT MARGIN

gross profit X 100


Sales

<p>gross profit X 100</p><hr><p>Sales </p>
3
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net profit margin

net profit x100


sales

<p>net profit x100 </p><hr><p>sales</p>
4
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Return on shareholders Equity

Net Profit after tax and preference dividends X 100


ordinary share capital + reserves

<p>Net Profit after tax and preference dividends X 100 </p><hr><p>ordinary share capital + reserves </p>

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