Profitability ratios Flashcards
1
Q
Return on Invested Capital
A
2
Q
Return on Invested Capital (shareholder)
A
3
Q
Gross profit ratio
A
4
Q
Markup
A
= Gross profit/COGS
5
Q
Net profit to sales
A
Net profit/sales
6
Q
Return on Sales
A
This index gives us the ability of the company to turn revenues into income.
7
Q
Profit margin
A
8
Q
Return on Assets
A
This ratio tells the profitability of a company’s assets. It is about the ability of the company’s assets in generating income.
9
Q
Tax incidence
A
This ratio provides us with the percentage of the company’s income which is payed in the form of taxes.
