Profitability Ratios Flashcards
1
Q
Net Profit Margin
A
NI / Net Sales
2
Q
Return on Total Assets
A
NI / Avg. Total Assets
3
Q
Return on Assets
alternate version
A
Net PM x Total Asset T/O
4
Q
Return on Investment
A
(NI + Int. Exp. (1 - Tax Rate)) / Avg. (LT Liabilities + Equity)
Measure performance w/out regard to the method of financing.
5
Q
Return on Common Equity
A
(NI - Preferred Dividends) / (Avg. Common Equity)
Measures returns accruing to common shareholders.
6
Q
Net Operating Margin Percentage
A
Net Operating Income / Net Sales
Net Operating Income = GP - Op. Exp.
7
Q
Gross (Profit) Margin Percentage
A
GP Margin / Net Sales
8
Q
Operating CF per Share
A
Operating CF / Common Shares Outstanding
