Profitability formulas

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  • Created by: lara__001
  • Created on: 21-02-20 12:33
What is the correct formula for gross profit?
revenue - cost of sales
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What is the correct formula for gross profit margin?
(gross profit / sales revenue) *100
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What is the correct formula for operating profit?
gross profit - overheads
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What is the correct formula for operating profit margin?
(operating profit / sales revenue) *100
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What is the correct formula for net profit?
operating profit - tax
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What is the correct formula for net profit margin (profit for year)?
(net profit / sales revenue) *100
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What is the correct formula for return on capital employed?
(operating profit / capital employed) *100
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Other cards in this set

Card 2

Front

What is the correct formula for gross profit margin?

Back

(gross profit / sales revenue) *100

Card 3

Front

What is the correct formula for operating profit?

Back

Preview of the front of card 3

Card 4

Front

What is the correct formula for operating profit margin?

Back

Preview of the front of card 4

Card 5

Front

What is the correct formula for net profit?

Back

Preview of the front of card 5
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