> For the complete documentation index, see [llms.txt](https://smart-dragon.gitbook.io/smartdragon/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://smart-dragon.gitbook.io/smartdragon/smartdragon-support-1/smart-invest/financial-ratios/corporate-financial-ratio/profitability-ratios.md).

# Profitability ratios

* **Return on Equity (ROE)** - Reflects the profitability of an enterprise relative to shareholders' equity. 
* **Return on Assets (ROA)** - Reflects how efficiently an enterprise can get from investing in assets. 
* **Return on Capital Employed (ROCE)** - Reflects the profit or return an enterprise earns from the capital employed. 
* **Return on Invested Capital (ROIC)** - The amount of money that an enterprise generates is higher than the average cost the business pays on its debt and equity. 
* **Gross Profit Margin** - The difference between revenue and cost of goods sold divided by revenue. 
* **Operating Profit Margin** - Reflects how much profit an enterprise makes from a dollar of revenue. 
* **Profit margin before tax** - Reflects the amount of profit before tax of an enterprise relative to revenue. 
* **Net profit margin** - Reflects the amount of net profit of an enterprise compared to revenue. 
* **EBITDA/CFO** - Reflects earnings before interest, taxes and depreciation on total cash flow from operating activities. 
* **F Score (score**) - Assesses the strength of the enterprise's financial position. 
* **Net profit/CFO** - Reflects the profit after tax of the business on the total cash flow from business activities. 
* **Average Interest Rate** - The average portion of income for savings or loans to finance the economy.

<img src="/files/dhoMprIJI0sUrnjrGR37" alt="Profitability ratios" class="gitbook-drawing">