Profitability Measurement Quiz

What is the formula for calculating the gross profit margin?

How do you calculate the mark-up percentage?

Which formula is used to calculate the profit margin?

What is the formula for return on capital employed (ROCE)?

How is profit for the year calculated?

• Revenue – cost of sales

• Revenue – cost of sales – expenses

• Revenue – expenses

• Revenue – cost of sales + expenses

What is the formula for capital employed using total assets and current liabilities?

• Total assets + current liabilities

• Total assets – current liabilities

• Total assets × current liabilities

• Total assets ÷ current liabilities

How can capital employed be calculated using non-current liabilities and total equity?

• Non-current liabilities – total equity

• Non-current liabilities + total equity

• Non-current liabilities × total equity

• Non-current liabilities ÷ total equity

If a company has a gross profit of £50,000 and revenue of £200,000, what is the gross profit margin?

• 20%

• 25%

• 30%

• 35%

A business has a gross profit of £30,000 and cost of sales of £100,000. What is the mark-up percentage?

• 20%

• 25%

• 30%

• 35%

If a company has a profit of £40,000 and revenue of £160,000, what is the profit margin?

• 20%

• 25%

• 30%

• 35%