Profitability Ratios Flashcards
1
Q
net profit margin
A
NI/Rev
2
Q
gross profit margin
A
gross profit/ rev
3
Q
operating profit margin
A
op inc/ Rev or EBIT/rev
4
Q
pretax margin
A
EBIT/rev
5
Q
ROA (short)
A
NI/ave tot assets
6
Q
ROA (with after tax)
A
NI + interest exp (1-tax)/ ave tot assets
7
Q
Operating ROE
A
Op Income / ave total assets or EBIT/ave total assets
8
Q
Return on total capital
A
EBIT/ave total capital
9
Q
ROE (short)
A
NI/ave total equity
10
Q
Return on Common Equity
A
NI - pref div / ave comm equity
11
Q
FCFF expanded
A
NI + noncash charges + after tax int exp - fixed cap investment - working capital investment
12
Q
FCFF condensed
A
CFO + after tax int. exp - fixed capital investment
13
Q
FCFE
A
CFO - fixed cap investment + net borrowing
14
Q
common size income stmt ratio
A
income statement /sales
15
Q
common size bal sheet ratio
A
bal sheet/ assets
