Profitability Flashcards

1
Q

Profit margin ratio

A

Net income/net sales

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2
Q

Gross margin ratio

A

Net sales-COGS/net sales

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3
Q

Return on total assets

A

Net income/average total assets

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4
Q

Return on equity

A

Net income/average total equity

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5
Q

Basic EPS

A

Net income-Preferred Dividends/weighted average common shares outstanding

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