Profitability ratios

Profitability ratios reflects the profitability and efficiency of using assets of the enterprise.

  • 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.

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