Profitability - Ratios Flashcards
1
Q
Gross margin
A
Gross profit / sales
2
Q
Operating margin
A
Operating income / sales
3
Q
EBIT Margin
A
EBIT / sales
4
Q
Net profit margin
A
Net income / total sales
5
Q
Return on equity (RoE)
A
Net income / book value of equity
6
Q
Return on assets (RoA)
A
(Net income + interest expenses) / book value of assets
7
Q
book value of equity
A
book value of assets - book value of liabilities
8
Q
book value of assets
A
acquisition cost - accumulated depreciation
9
Q
Market-to-book ratio
A
Market value of equity / book value of equity
