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Profitability

Is the business making enough from what it sells? Margins, mark-up, return on capital and where the money goes.

Free5 rooms45 questions48 min
Start this moduleHow to work out gross profit margin

Rooms in this module

  1. 1How to work out gross profit margin8 min, easyFree
  2. 2How to work out net profit margin10 min, easyFree
  3. 3Mark-up is not margin10 min, mediumFree
  4. 4How to work out return on capital employed10 min, mediumFree
  5. 5How to read expenses as a share of sales10 min, mediumFree

How this works

Each room answers one problem. A task is a few lines of reading, then questions you answer in the books: post to an account, type a figure, sort, match or write a journal. Every answer is marked at once, with the rule behind it. There are no videos.

Words in this module

Gross profit
Gross profit is revenue less cost of sales: the profit on trading, before the running expenses of the business.
Net profit
Net profit is the profit for the year: gross profit less all the other expenses of running the business.

Questions

How many rooms and questions are in Profitability?

5 rooms and 45 questions. Every question is marked at once.

How long does it take?

About 48 minutes in all. A room takes 8 to 10 minutes, so you can do one at a time.

Is it free?

Yes. Every room in this module is free, and you can start with no account.

What should I do first?

Nothing. This is the first module of Reading the numbers, so you can start here.