Profitability Ratios Flashcards
1
Q
ROE
A
Net Income/Average Stockholders’ Equity
2
Q
Average Stockholders’ Equity
A
(Beginning Stockholders’ Equity + Ending Stockholders’ Equity)/2
3
Q
ROA
A
(Net Income + Interest Expense (net of tax))/Average Total Assets
4
Q
Average Total Assets
A
(Beginning Total Assets + Ending Total Assets)/2
5
Q
EPS
A
Net Income/Average Number of Shares of Common Stock Outstanding
6
Q
Profit Margin
A
Net Income/Net Sales
7
Q
Common Stock Dividend Payout Ratio
A
Cash Dividends Paid to Common Stock Holders/(Net Income Before Extraordinary Items - Preferred Dividends)
8
Q
Book Value per Common Share
A
Net Assets Available to Common Stockholders/Common Shares Outstanding
