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Business AP5 CH18-22
CH22 - Ratio Analysis
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Created by
Pijus Zulkus
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Cards (4)
Accounting ratios
allows
stakeholders
to make
judgements
on how
efficiency
a
bussiness
is being
run
Gross
profit Margin:
Calculated using gross profit & sales
shows
how
efficient
a
business
is at
selling
its
product/service
Gross Profit Margin
=
Gross Profit
/
Net sales
X
100
Net profit margin
=
Net profit
/
Net Sales
x
100