Return on assets or ROA measures the percentage rate of return a business gets on its assets. It is calculated by dividing the earnings before interest and tax by the total assets of the business.

# Profitability Ratios

Return on Assets ROA November 6th, 2016

## ROCE – Return on Capital Employed

## Net Profit Ratio

## Return on Sales

The return on sales is the operating profit of the business expressed as a percentage of the revenue. It is a measure of the level of true income a business generates on its sales. It is calculated by dividing operating profit by revenue. Operating profit is the same as profit before interest and tax (PBIT), otherwise called earnings before interest and tax (EBIT).

Return on Sales November 6th, 2016

## Overhead Ratio

## What are Profitability Ratios?

## Gross Profit Percentage

The gross profit percentage is the gross profit (sometimes called gross margin) of the business expressed as a percentage of the revenue. It is a measure of the level of true income a business generates on its sales. It is calculated by dividing gross profit by revenue.

Gross Profit Percentage November 9th, 2016