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Slide 1

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Profitability ratios…read more

Slide 2

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Gross profit percentage of sales
Gross profit
Sales turnover
This is also called the Gross Profit Margin or GPM
AS…read more

Slide 3

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Net profit percentage of sales
Net profit
Sales turnover 100
This is also called the Net Profit Margin or NPM
AS…read more

Slide 4

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Return on Capital Employed
Net profit before interest and tax
Capital employed 100
Also known as ROCE or primary
efficiency ration
A2…read more

Slide 5

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Using the figures below calculate GPM,
$ billion 2005
Revenue 13.9
Cost of sales 9.8
Gross Profit 4.1
Operating Profit 1.6
Retained Profit 1.3
Capital employed 2005
Share capital 3.6
Retained earnings 3.9…read more

Slide 6

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· Practice exercise 2 ­ page 4
· 25 minutes…read more


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