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Essay

Finance Analysis

Essay specific features

 

Issue:

Business

 

Written by:

Cynthia H

 

Date added:

March 31, 2013

 

Level:

University

 

Grade:

A

 

No of pages / words:

7 / 1793

 

Was viewed:

8314 times

 

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Essay content:

The profitability ratios so the success or the failure of some businesses. The ratios are there to express the profits made by a business so that on financial statements so that they compare how they are doing compared to other business and how they’ve done in the past. Firstly Gross profit margin: ‘The gross profit margin relates to the gross profit of the business to the sales revenue generated for the same period...
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Gross profit represents the difference between sales revenue and the cost of sales. The ratio is therefore a measure of profitability in buying (or producing) and selling goods before any other expenses are taken into account.’ Source: McLaney E., Atrill P., Accounting an Introduction 3rd edition...
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