Ratios
Profitability ratios
Profitability ratios measure the firm's use of its assets and con trol of its expe nses to gen erate an acceptable rate of return.
Gross margin. Gross profit margin or Gross Profit Rate
Gross Profit
Net Sales
OR
S吐s - GOGS
Net. Sales
Operat ing margin, Operat ing In come Margin, Operat ing profit margin or Retur n on sales (ROS)
Operating Income
Net Sales
Note: Operati ng in come is the differe nee betwee n operati ng reve nues and operat ing expe nses, but it is also sometimes used as a synonym for EBIT and operating profit. [10] This is true if the firm has no non-operati ng in come. (Ear nings before in terest and taxes / Sales)
Profit margin, net margin or net profit margin
Ntit Income
Net Sales
Return on equity (ROE)
Net Income
Average SharcholdeTS Equity
Retur n on in vestme nt (ROI ratio or Du Pont ratio)
Net Income
Average Owmeis Equity
Retur n on assets (ROA)
Net Income
Tot EL I Assets
Return on assets Du Pont (ROA Du Pont)
(Net Income f Net Sales \ \
Retur n on Equity Du Pon t (ROE Du Pont)
(
Xet Income\ / Net Sales A ( Average Assets\
Net Sales / \ Average Assets J \ Average Equity J
Retur n on n et assets (RONA)
Not Income
Fixed Assets + Working Capitai
Return on capital (ROC)
N«t Operating Profit 一Adjusted Ta^es
Owners Equity
Risk adjusted return on capital (RAROC)
Expoctod Return
Economic Capital
OR
Expccted Ret urn
Value at Risk
Retur n on capital employed (ROCE)
Net Income
Capital Employed
Note: this is somewhat similar to (ROI), which calculates Net In come per Owner's Equity
Cash flow return on in vestme nt (CFROI)
C OB I I Flow
Market Recapitalisation
Efficie ncy ratio
Xon-Int treat Income
Net Interest Income + Non-Interest. Income
Net geari ng
dette nette
fonds propres
Liquidity ratios
Liquidity ratios measure the availability of cash to pay debt.
Curre nt ratio
Current. Assets
Current Liabilities
Acid-test ratio (Quick ratio) [17]
Current Assets - (Inventories + Pre payments )1
Current. Liabilities
Operation cash flow ratio
Operation Cash Flow
Total Debts
Activity ratios
Activity ratios measure the effective ness of the firms use of resources.
Average collect ion period
Accounts R-eceivablc
Annual Credit Sales H- 365 Days
Degree of Operat ing Leverage (DOL)
Percent Change in Net Operating Income
| Percent Change in Salos
DSO Ratio
Acrounts Rcccivabte
Total Annual Sales -4- 365 Days
Average payme nt period
Accounts Payabl-e
Annual Credit Purchases 子365 Davs
2 I
Asset tur no ver
Net Sales
Tot al Assets
