> 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/securities-company-finacial-ratio/profitability-ratios.md).

# Profitability ratios

The Profitability ratios reflects the profitability and efficiency of using assets of a securities company.

* **Return on Equity (ROE)** - Reflects the profitability of a securities company relative to shareholders' equity. 
* **Return on Assets (ROA)** - Reflects how efficiently a securities company can get from investing in assets. 
* **Return on Capital Employed (ROCE)** - Reflects the profit or return a securities company earns from the capital employed. 
* **Return on Invested Capital (ROIC)** - The amount of money that a securities company 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 a securities company relative to revenue. 
* **Net profit margin** - Reflects the amount of net profit of a securities company compared to revenue. 
* <mark style="color:green;">**Financial assets at fair value through profit and loss performance (FVTPL)**</mark> - Reflects the efficiency of financial assets recognized through profit and loss (FVTPL) of the securities company.

{% hint style="info" %}
Ratios highlighted in <mark style="color:green;">green</mark> and **bold** are securities company-specific ratios.
{% endhint %}