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Advanced Profitability
First some advanced profitability equations:
| PBIT | = | Profit before Interest and Taxation | * 100 |
| Turnover |
| PBT | = | Profit for the Year | * 100 |
| Turnover |
| Profit for the Year Margin | = | Net Profit | * 100 |
| Turnover |
| Administration costs % | = | Administration costs | * 100 |
| Turnover |
| Interest costs % | = | Interest costs | * 100 |
| Turnover |
| Overhead costs % | = | Total Overhead Costs | * 100 |
| Cost |
Who uses these Profitability Ratios?
Look back at the table of users and what they use to see who might use a profitability ratio... now think about why they use them and what the results tell them.
Use the Profitability Ratios 2: more advanced
Now that we have worked through some of the basic profitability ratios, let's sharpen our pencils and get our calculators out and do some more advanced analysis...
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