3.8 profatibility ratios
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7 Terms
1
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Gross profit margin
gross profit/revenue x 100
2
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Gross profit mark up
Gross profit/cost of sales x 100
3
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Expenses in relation to revenue
Expenses/revenue x 100
4
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Net profit margins (sole trader)
Profit for year/revenue x 100
5
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Net profit margin (ltd company)
Operating profit / revenue x 100
6
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Return on capital employed
Profit for year / capital employed x100
7
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Capital employed
Non current liability + equity
Note 
Flashcards (28)