PROFITABILITY INDEX
Gross profit margin Gross profit margin calculates the percentage of gross profit to sales ratio/net sales. where gross profit is calculated as ABC & CO statement of profit and loss for the year ended 20x5 PARTICULARS $ $ $ Revenue XXX Less: Sales returns XX Net sales XXX XXX XXX Less: cost of sales Opening stock XX Add: purchases xxx Less: Purchase returns (X) Cost of goods available XX Less: closing stock (XX) XX Cost of sales