Profitability Ratios Flashcards
How do you calculate Return on Equity?
Net Income / Average Total Shareholders Equity
How do you calculate Return on Assets?
Net Income / Average Total Assets
How do you calculate EBITDA Margin?
EBITDA / Revenue
How do you calculate Gross Profit Margin Ratio?
Gross Profit / Net Sales Revenue
How do you calculate Earnings per Share Ratio (EPS)?
Net Income / Weighted Average Number of Common Shares Outstanding
How do you calculate the Quality of Income Ratio?
Cash Flows from Operating Activities / Net Income
How do you calculate the profit margin?
Net Income / Sales
How do you calculate ROIC? Return on Invested Capital
NOPAT / Short-term Debt + Long Term Debt + Market Cap
How do you calculate Total Return to Shareholders (TRS)
Current Price Per Share - Previous Price Per Share
+ (Dividend / Shares Outstanding)
/
Previous Price Per Share
