Gross Profit Margin

Gross profit MarginGross profitsales × 100

Net Profit Margin

Net profit marginnet profit (operating profit)sakes × 100

Return on capital Employed (ROCE)

This ratio shows the amount of money earned by the business in relation to how much money was invested by shareholders

ROCEoperating profitcapital employed × 100

Return on Equity

The ratio measures how much profit is generated for every pound of shareholders funds invested

Return on EquityProfit for the yearShareholders equity

The difference between ROCE and ROE is that ROCe is a more comprehensive measure as it takes into consideration shareholders fund and liabilities while ROE does not.

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