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15 cards from this deck
How much profit a business generates from its sales (as a %)
% of sales revenue that becomes gross profit
(Gross profit ÷ Sales revenue) × 100
40p from every £1 of sales becomes gross profit
Direct production costs only
% of sales revenue remaining as net profit after all expenses
(Net profit ÷ Sales revenue) × 100
8p from every £1 of sales becomes net profit
NPM
NPM (includes more costs)
Investment opportunities
(Average annual profit ÷ Cost of investment) × 100
Total profit over period ÷ Number of years
Better efficiency and profitability
Percentage
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