F-2 M-8 Profitability Ratios Flashcards
1
Q
Gross (Profit) Margin
A
(Net Sales - COGS) / Net Sales
2
Q
Profit Margin
A
Net Income / Net Sales
3
Q
Return on Sales
A
(Income before Interest Income, Interest Expense, and Taxes) / Net Sales
4
Q
Return on Assets
A
Net Income / (Average Total Assets)
5
Q
DuPont Return on Assets
A
Profit Margin x Asset Turnover
6
Q
Asset Turnover
A
Net Sales / Average Total Assets
7
Q
Return on Equity
A
Net Income / Average Total Equity
8
Q
Operating Cash Flow Ratio
A
Cash Flow from Operations / Current Liabilites
