Profitability Flashcards
1
Q
Net Profit Margin Ratio
A
Net profit / Sales =%
OR
Net Income / Net Sales
2
Q
Return on Total Assets
A
Net income / Total assets =%
OR
Net income / Average Total assets
3
Q
Return on Common Equity
A
Net income / Common equity = %
or
Net income / Average Owner’s Equity
4
Q
Operating Profit Margin (Not Included)
A
Operating Income / Net Sales = %
5
Q
Gross Profit Ratio (Not Included)
A
Gross Profit / Net Sales =%
