Performance Ratio Flashcards
1
Q
Gross profit margin
A
Gross profit/ sales
2
Q
Operating profit margin
A
EBITDA / sales et EBIT / sales
3
Q
Net profit margin
A
Net income / sales
4
Q
Return on assets
A
Net income / total assets
5
Q
Return on equity
A
Net income / equity
6
Q
Earnings per share
A
(Net income - Dividends on preferred shares) / weighted average number of outstanding common shares
7
Q
Diluted earnings per share
A
(Net income - Dividends on preferred shares) / (weighted average number of outstanding common shares + number of potential common shares)
8
Q
Price-to-earnings ratio
A
Share price / Earnings per share
