profitability ratios Flashcards
1
Q
profit margin
A
net income/total revenue
2
Q
operating efficiency ratio
A
gross operating profit/total revenue
3
Q
return on assets
A
net income/avrg total assets
or
profit margin x asset turnover
4
Q
gross return on assets
A
ebit/average total assets
5
Q
return on owners equity
A
net income/averg owners equity
6
Q
return on commun stockholder equity
A
net income-preferred dividend/ average common stock issued
7
Q
earnings per share
A
net income/avergae common shares outstanding
8
Q
price/earnings ratio
A
market price per share/ earnings per share
