3. Finance and Accounts
Profitability Ratios — Quiz
Test your understanding of profitability ratios with 5 practice questions.
Practice Questions
Question 1
What does the net profit margin show in a business?
Question 2
Which formula is used to calculate gross profit margin?
Question 3
A business has revenue of $200,000$ and gross profit of $80,000$. What is its gross profit margin?
Question 4
A business has revenue of $150,000$ and net profit of $15,000$. What is its net profit margin?
Question 5
Which statement best describes why a business might want to improve its profitability ratios?