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  • Notes: Profitability Ratios Method of Calculation 2020 2019

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    Ashley Gaze
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    This document contains calculations of various profitability ratios for the years 2020 and 2019. It shows that the gross profit margin increased from 17.60% in 2019 to 21.12% in 2020. The operating profit margin rose from 3.13% to 4.79% over the same period. Finally, the net profit margin turned positive at 0.94% in 2020 compared to negative 0.64% in 2019.

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    This document contains calculations of various profitability ratios for the years 2020 and 2019. It shows that the gross profit margin increased from 17.60% in 2019 to 21.12% in 2020. The operating profit margin rose from 3.13% to 4.79% over the same period. Finally, the net profit margin turned positive at 0.94% in 2020 compared to negative 0.64% in 2019.

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    11 views1 page

    Notes: Profitability Ratios Method of Calculation 2020 2019

    Uploaded by

    Ashley Gaze
    This document contains calculations of various profitability ratios for the years 2020 and 2019. It shows that the gross profit margin increased from 17.60% in 2019 to 21.12% in 2020. The operating profit margin rose from 3.13% to 4.79% over the same period. Finally, the net profit margin turned positive at 0.94% in 2020 compared to negative 0.64% in 2019.

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    Notes

    Profitability Method of calculation 2020 2019


    Ratios
    (6,016,581 ÷ 28,488,591) × (5,866,316 ÷ 33,337,661) ×
    (Gross Profit ÷ Net
    Gross Profit 100 100
    Revenue) × 100
    Margin = 21.12% =17.60%

    1,364,484 ÷ 28,488,591 × 1,044,376 ÷ 33,337,661 ×


    Operating (Operating Profit ÷ Net
    100 100
    Profit Revenue) × 100
    =4.79% =3.13%
    Margin
    (267,721 ÷ 28,488,591) (-213,323 ÷ 33,337,661)
    Net Profit (Net profit ÷ Net Revenue)
    × 100 × 100
    Margin ×100
    =0.94% =(0.64%)

    (1,364,484 ÷ 20,750,223) × (1,044,376 ÷ 19,926,080) ×


    Return on (PBIT ÷ Equity + Interest
    100 100
    Capital bearing borrowings) × 100
    =6.58% =5.24%
    Employed
    (ROCE)

    (267,721 ÷ 10,669,432) × (-213,323 ÷ 10,368,939) ×


    Return On (PAT ÷ Shareholders equity) ×
    100 100
    Equity 100
    =2.51 % =(2.06) %
    (ROE)

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