A. Quick ratio B. Average collection period C. Return on equity D. Times interest E. arned F. eedback: This is the only profitability ratio that is listed. All profitability ratios have net ine in the denominator. 相关知识点: 试题...
Home›Finance›Financial Ratio Analysis›Profitability Ratios Profitability ratios compare income statement accounts and categories to show a company’s ability to generate profits from its operations. Profitability ratios focus on a company’s return on investment in inventory and other assets. These...
It is the most common profitability ratio used to measure the profit after deducting all the expenses, losses, and provisions for bad debt. It measures how much you make out of every penny you spend on the business. For example, if you have a net profit margin of 10%, then on every ...
Figure 3: Profitability ratios analysis for McDonald’s, 1998 - 2004 Operating profit margin and net profit margin from 2002 to 2004 reviewed the followings. The operating profit margin rebounds from a low of 13.72% in 2002, to 16.52% in 2003. The figure increased further to 18.57% in 2004...
The profit margin ratio, also called the return on sales ratio, is a profitability ratio that measures the amount of net income earned with each dollar of sales generated by comparing the net income and net sales of a company.
Efficiency ratios (for example, inventory turnover ratio; accounts receivable collection period ratio: which is the number of days per year(365) divided by accounts receivable turnover; fixed asset ratio); Profitability ratios (such as, gross profit margin ratio: which is gross profit divided by...
The operating ratio is a type of profitability ratio. It is the comparison of an operating expense to the revenue of a business. Operating expenses could be an expense or a category of expenses like selling and distribution, administration, depreciation, salaries, etc. It is an important determi...
ratio measures a company’s ability to use its assets to generate income. It often looks at various aspects of the company, such as the time it takes to collect cash from customers or to convert inventory to cash. An improvement in efficiency ratio usually translates to improved profitability....
It also examines a strength of relations between profitability ratios estimated and shareholder value creation measure 鈥 price/book value (P/BV) ratio.doi:10.15611/pn.2016.428.24Grzegorz Urbanek
As an example, assume company ABC wishes to assess the profitability of a project that involves renovating an apartment building over the next year. The company decides to lease the equipment needed for the project for $50,000 rather than purchasing it. The inflation rate is 2%, and the reno...