Profitability Ratio Definitions Flashcards
1
Q
Return on assets
A
Return earned through total assets provided by both creditors and owners (how hard assets are working)
2
Q
Return on ordinary equity
A
Return earned on equity provided by owners
3
Q
Profit margin
A
Net profitability of each dollar of sales
4
Q
Gross profit margin
A
Gross profit generated by each dollar of sales
5
Q
Expense ratio
A
Expenses associated with each dollar of sales
6
Q
Earnings per share
A
Profit earned on each ordinary share
7
Q
Price-earnings ratio
A
Amount investors are paying for a dollar of earnings
8
Q
Earnings yeild
A
Return to an investor purchasing shares at the current market price
9
Q
Dividend yeild
A
Return to shareholders based on current market price
10
Q
Dividend payout
A
Percentage of profits payed out to ordinary shareholders
