Profitability Ratios Flashcards by TJ Smith | Brainscape

Q

Gross Operating Margin

A

Gross Operating Margin = (Sales - COGS) / Sales

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Q

Net Operating Margin

A

Net Operating Margin = EBIT / Sales

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Q

Return on Assets

A

Return on Assets = Net Profit / Total Assets

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Q

EBIT

A

EBIT = Revenue - Expenses

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