13:7
Formula to calculate the ratio
It is 100*profit/costs.
Total Profit = Total Revenue minus Total Costs.
The word net has many definitions. The most common one used in maths is the idea of net growth or net profit. It means the final value of something once everything has been taken into account. With money, the net profit is the money you make, once all costs have been taken into account. Say I buy a games console for £90, get the bus into town for £3 and then sell it to you for £120. The £120 I now have isn't all profit. I gain £120 when you buy the console from me, but we have to bear in mind I had to pay out £90 to buy it and £3 for the bus. So my NET profit is £27, which is the amount I have made, including al my costs.
profit margin = net income / total revenue
[Gross Profit Ratio = (Gross profit / Net sales) × 100]
The formula of net profit in MS Excel is:- =net profit(cost price+sell price/100*200*2)
Profit Margin ratio is the comparison of profit as a percentage of revenue and calculated as follows Profit Margin ratio = Net Profit/Revenue
net profit/sales
net profit devided by total assets is called return on total asset and formula is as follows: Return on total assets = Net profit / total assets.
it is also known as net profit margin. this ratio shows how much net income a company earns from operations. a higher ratio implies higher profit earned. profit margin is calculated as follows:profit margin = (Net income / Revenue) * 100
net income divided by sales
1. Net sales - cost of goods sold = Gross profit Gross profit / Net sales = Gross profit ratio
(Net profit/Net Revenue) * 100 = Net Profit Percentage Ex: Net Revenue = 10,000 USD Expenditure = 7500 USD Profit = 2500 USD Profit Percentage = 2500/10000 * 100 = 25%
: Profit and loss account gives the actual information about net profit or net loss of the business for an accounting period, Profit and loss account gives the actual information about indirect expenses, Profit and loss account serves to show the ratio between net profit to sales, Profit and loss account helps in showing the ratio between net profit to operating expenses, Profit and loss account helps in controlling indirect expenses
gross margin ratio is calculated as >GROSS PROFIT/NET SALES