Profitability Ratio

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Khurram Taj
Khurram Taj Registered Posts: 29 Regular contributor ⭐
Gross profit margin:- Gross profit / sales x 100 = %
Gross profit earned from sales expressed as a percentage.

Operating profit margin:- Operating profit / sales x 100 = %
Operating profit earned from sales expressed as a percentage.

Return on capital employed:- Operating profit / Capital employed1
x 100 = %
Operating profit earned from capital employed expressed as a percentage.

Return on equity:- Profit distributable to shareholders Equity x 100 = %
Profit after all deductions earned from shareholders funds expressed as a percentage.
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