Tuesday, 11 April 2017

Profit Turnover

For example:

Annual turnover $10 million
Annual profit before tax $1 million
Profit before tax to turnover 10%

This uses Profit before tax but it may be more useful to use Profit after tax.

Perhaps you want to define profit as excluding the charge for bank interest (EBIT or Earnings before Interest and Tax).

You should select the definition most relevant to your circumstances.

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