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6 Cards in this Set
- Front
- Back
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What’s a profit margin ratio |
These are used to access how successful the management of a business has been at converting sales revue and into both gross profit and operating profit. |
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Def of gross profit |
Sales revenue less cost of sales |
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Def of cost of sales |
These are the direct cost of the goods that were sold during the fincial year. This is opening stock + purchase minus closing stocks |
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Def of operating profit |
Gross profit - overheads |
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Def of gross profit large in |
This ratio compares gross profit before deduction of overheads with revenue |
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Def of operating profit margin |
This ratio compared operating profit with revenue |
