Ratio Analysis And Communication Formats: Profitability Ratios Calculation Table Format (Copy)
Profitability Ratios Calculation Table Format
Standard Profitability Ratios Calculation Table (Exam-Preferred)
Profitability Ratios – Calculation Table
| Ratio | Formula | Calculation | Result |
|---|---|---|---|
| Gross Profit Margin | Gross Profit ÷ Revenue × 100 | xxxx ÷ xxxx × 100 | x% |
| Operating Profit Margin | Operating Profit ÷ Revenue × 100 | xxxx ÷ xxxx × 100 | x% |
| Net Profit Margin | Profit For The Year ÷ Revenue × 100 | xxxx ÷ xxxx × 100 | x% |
| Return On Capital Employed (ROCE) | Operating Profit ÷ Capital Employed × 100 | xxxx ÷ xxxx × 100 | x% |
- Always Show Formula
- Always Show Working
- Final Answer Must Be Percentage
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Expanded Profitability Ratios Table (High-Scoring Format)
Profitability Ratios – Full Working Table
| Ratio | Figures Used | Working | Final Answer |
|---|---|---|---|
| Gross Profit Margin | GP = xxxx, Revenue = xxxx | (xxxx ÷ xxxx) × 100 | x% |
| Operating Profit Margin | OP = xxxx, Revenue = xxxx | (xxxx ÷ xxxx) × 100 | x% |
| Net Profit Margin | Profit = xxxx, Revenue = xxxx | (xxxx ÷ xxxx) × 100 | x% |
| ROCE | OP = xxxx, CE = xxxx | (xxxx ÷ xxxx) × 100 | x% |
- Examiner Can See Exact Figures
- Prevents Method Mark Loss
Capital Employed Working (Linked Format)
Capital Employed Calculation
| Method | Calculation |
|---|---|
| Capital Method | Equity + Non-Current Liabilities |
| Net Assets Method | Total Assets − Current Liabilities |
| Example | Amount |
|---|---|
| Equity | xxxx |
| Non-Current Liabilities | xxxx |
| Capital Employed | xxxx |
- Must Match Figures Used In ROCE
- One Method Only
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Profitability Ratios Table Without Percent Sign (Common Error Format – Avoid)
| Ratio | Working | Answer |
|---|---|---|
| Gross Profit Margin | xxxx ÷ xxxx × 100 | x |
- Always Add %
- Missing % Loses Marks
Profitability Ratios Table Without Table (Short Question Format)
Profitability Ratios
- Gross Profit Margin = (Gross Profit ÷ Revenue) × 100 = x%
- Operating Profit Margin = (Operating Profit ÷ Revenue) × 100 = x%
- Net Profit Margin = (Profit For The Year ÷ Revenue) × 100 = x%
- ROCE = (Operating Profit ÷ Capital Employed) × 100 = x%
- Accepted Only In Short Questions
- Clear Layout Still Required
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Profitability Ratios Included At AS Level
- Gross Profit Margin
- Operating Profit Margin
- Net Profit Margin
- Return On Capital Employed
Profitability Ratios Never Used At AS Level
- Earnings Per Share
- Price Earnings Ratio
- Dividend Yield
Written And Compiled By Sir Hunain Zia (AYLOTI), World Record Holder With 154 Total A Grades, 7 Distinctions And 11 World Records For Educate A Change AS Level Accounting Full Scale Course
Presentation Rules For Profitability Ratios (Exam Scoring)
- Use Same Revenue Figure Consistently
- Use Operating Profit For ROCE
- Show All Workings
- State Answers To 1 Or 2 Decimal Places If Required
- Use % Sign
Common Labels Used In Profitability Ratio Tables
- Gross Profit
- Revenue
- Operating Profit
- Profit For The Year
- Capital Employed
Compact Profitability Ratios Table (Emergency)
| Ratio | Working | Result |
|---|---|---|
| GPM | xxxx ÷ xxxx × 100 | x% |
| OPM | xxxx ÷ xxxx × 100 | x% |
| NPM | xxxx ÷ xxxx × 100 | x% |
| ROCE | xxxx ÷ xxxx × 100 | x% |
One-Glance Exam Template
Profitability Ratios
Formula → Working → %
Always Show Capital Employed