Profitability Ratios Flashcards
1
Q
Roa
A
Rev\ av Asst
Or
Profit marg X asst turn
2
Q
Return on Capital
A
Ebit/tot Capit
3
Q
RoE
A
Ni/av Eq
Or
Roa x fin lev
4
Q
Return on Common Eq
A
(Ni - pref div)/av common eq
5
Q
Roe Dupont
A
Roe = tax burden x int burden x oper prof x efficency x leverage
Roe = ni/ebt x ebt/ebit x ebit/rev x rev/asst x asst/eq
