A Summary of Key Financial Ratios How They …（总结关键财务比率如何u2026）.pdfVIP

A Summary of Key Financial Ratios How They Are Calculated and What They Show Profitability Ratios 1. Gross profit margin Sales - Cost of goods sold Sales An indication of the total margin available to cover operating expenses and yield a profit. 2. Operating profit margin Profits before taxes and interest (or Return on Sales) Sales An indication of the firms profitability from current operations without regard to the interest charges accruing from the capital structure 3. Net profit margin (or net Profits after taxes Return on sales) Sales Shows after tax profits per dollar of sales. Subpar profit margins indicate that the firms sales prices are relatively low or that costs are relatively high, or both. 4. Return on total Assets Profits after taxes or Profits after taxes + interest Total assets Total assets A measure of the return on total investment the enterprise. It is sometimes desirable to add interest to after tax profits to form the numerator of the ratio since total assets are financed by creditors as well as by stockholders; hence, it is accurate to measure the productivity of assets by the returns provided to both classes of investors. 5. Return on stockholders Profits after taxes equity (or return on net Total stockholders equity worth) A measure of the rate of return on stockholders investment in the enterprise. 6. Return on common