Sample Essay Gross Profit Margin
The gross profit margin is a financial ratio used to evaluate the profitability of a firm’s core operations exclusive of its fixed costs. Gross profit margin = revenue-cost of sales/revenue.
|Gross Margin (%)-Google||58,60||62,80||65,55||65,76|
|Gross Margin (%)-Yahoo||62||60||58||59|
ROCE is a short form for return on capital employed. It is a measure of the returns that a company or business realizes given the capital that was used or employed. It can be used to measure performance between businesses or to evaluate whether a business produces enough returns to be able to pay for the cost of its capital. ROCE=earnings before interest and taxes (EBIT)/capital employed. Capital employed is given by total assets and current liabilities.
|Return on Capital Employ.(%)-Google||21,9||22,49||23,36||24,36|
|Return on Capital Employ. (%)-Yahoo||n.a.||n.a.||n.a.||n.a.|
 Berman, Karen (2006). Financial Intelligence.Boston:HarvardBusinessSchool Press