Profitability Ratio Flashcards

1
Q

Gross Profit Margin

A

Gross Profits / Sales

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2
Q

Operating Profit Margin

A

Operating Profit / Sales

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3
Q

Net Profit Margin

A

Earnings Available for Common Stockholders / Sales

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4
Q

Earnings Per Share

A

Earnings Available for Common Stockholders / # of Shares of common stock outstanding

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5
Q

ROA

A

Earnings Available for Common Stockholders / Total Assets

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6
Q

ROE

A

Earnings Available for Common Stockholders / Common Stock Equity

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