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The profit chain

The profit chain

Flowchart showing sales revenue leading to gross profit then net profit, with gross profit margin, net profit margin and ARR formula boxes.

These formulae track how money moves through a business, from sales revenue to gross profit to net profit. They also turn profit into percentages, which makes comparison between businesses of different sizes easier.

Profit, margin and average rate of return formulae Lesson

  1. GCSE
  2. /Business
  3. /Profit, margin and average rate of return formulae

Step-by-step lessons covering Edexcel GCSE Business Profit, margin and average rate of return formulae for GCSE Business. Each lesson works through exam-style questions in Paper 1 and Paper 2 format. Start by mastering business terminology and the functional areas (marketing, finance, operations, HR) before moving on to the extended, evaluation-heavy questions that carry the most marks.

Lessons