Profitability Ratios Flashcards
0
Q
Expenses / sales??
A
?
1
Q
Profit margin
A
Net income
/ sales
2
Q
ROA (Return on assets)
A
Net income
/ total assets
3
Q
Return on equity
A
Net income
/ equity
4
Q
ROCE/ROIC (Return on capital employed / return on invested capital)
A
- EBIT(1-Tc)
/ interest bearing debt + equity - EBIT(1-Tc)
/ invested capital
