3. Finance and Accounts

Profitability Ratios — Quiz

Test your understanding of profitability ratios with 5 practice questions.

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Practice Questions

Question 1

What does the profit margin ratio show in a business?

Question 2

Which formula is used to calculate gross profit margin?

Question 3

What does a high net profit margin usually suggest?

Question 4

Why might a business calculate gross profit margin and net profit margin separately?

Question 5

If a business has revenue of $200{,}000$ and gross profit of $80{,}000$, what is its gross profit margin?
Profitability Ratios Quiz — IB Business Management HL | A-Warded