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CPA Financial Ratios: Profitability Ratios
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Net Profit Margin =
Net Income / Net Sales
(profitability)
Return on Total Assets =
Net income / Average Total Sales
(Profitability)
Return on Assets =
Net profit margin x total asset turnover
(profitability)
Return on Investment =
(Net income + interest expense (1-tax rate)) / (average (long-term liabilities + equity))
(profitability)
Return on Common Equity =
(Net Income - Preferred Dividends) / Average common equity
Net Operating Margin Percentage =
Net operating income / net sales
Gross (profit) margin percentage =
gross profit margin / net sales
Operating cash flow per share =
operating cash flow / common shares outstanding
Author
arnoldb6a
ID
229787
Card Set
CPA Financial Ratios: Profitability Ratios
Description
CPA Financial Ratios: Profitability Ratios
Updated
2013-08-12T19:09:46Z
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