Profitability Flashcards
1
Q
Return on Assets (ROA)
A
Net Income / Total Assets
2
Q
A
3
Q
Dupont ROE
A
(Net Income / Sales) x (Sales / Total Assets) x (Total Assets / Equity)
4
Q
Dupont Terms for ROE
A
Net Profit Margin x Asset Turnover x Leverage Multiplier
5
Q
Gross Margin
A
Gross Profit / Sales
6
Q
Operating Margin
A
EBIT / Sales
7
Q
Net Profit Margin
A
Net Income / Sales
