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
Last modified September 27th, 2022
ROCE – Return on Capital Employed
Net Profit Ratio
Return on Sales
The return on sales is the operating income 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 income by revenue. Operating income is the same as earnings before interest and tax (EBIT), otherwise called profit before interest and tax (PBIT).
Last modified November 18th, 2022
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.
Last modified January 13th, 2023