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    Profitability Infographic

    Uploaded by

    Taufik Hussin
    The document discusses four financial ratios: 1) Profit Margin Ratio measures how much of each dollar of revenue a company retains as earnings. 2) Return on Equity (ROE) measures how much money a company has earned on the money invested in the business. 3) Return on Assets (ROA) measures how much a company's assets contribute to its earnings. 4) Return on Investment (ROI) measures how much profit a company gains from a specific investment.

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    Profitability Infographic

    Uploaded by

    Taufik Hussin
    9 views1 page
    The document discusses four financial ratios: 1) Profit Margin Ratio measures how much of each dollar of revenue a company retains as earnings. 2) Return on Equity (ROE) measures how much money a company has earned on the money invested in the business. 3) Return on Assets (ROA) measures how much a company's assets contribute to its earnings. 4) Return on Investment (ROI) measures how much profit a company gains from a specific investment.

    Original Description:

    Great overview of Profitability Ratios for SMEs

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    The document discusses four financial ratios: 1) Profit Margin Ratio measures how much of each dollar of revenue a company retains as earnings. 2) Return on Equity (ROE) measures how much money a company has earned on the money invested in the business. 3) Return on Assets (ROA) measures how much a company's assets contribute to its earnings. 4) Return on Investment (ROI) measures how much profit a company gains from a specific investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    9 views1 page

    Profitability Infographic

    Uploaded by

    Taufik Hussin
    The document discusses four financial ratios: 1) Profit Margin Ratio measures how much of each dollar of revenue a company retains as earnings. 2) Return on Equity (ROE) measures how much money a company has earned on the money invested in the business. 3) Return on Assets (ROA) measures how much a company's assets contribute to its earnings. 4) Return on Investment (ROI) measures how much profit a company gains from a specific investment.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
    Download as pdf or txt
    of 1

    Profit Margin Ratio

    how much of each dollar of revenue


    your company keeps as earnings

    The formula:

    /
    net income gross
    after taxes revenue

    Return on Equity (ROE)

    how much money youve earned on the


    money you invested in your business

    The formula:

    /
    earnings average
    before tax owners equity

    Return on Assets (ROA)

    how much your assets are


    contributing to your earnings

    The formula:

    /
    earnings average
    before tax total assets

    Return on Investment (ROI)

    how much you profit from a specific


    investment

    The formula:

    ( gain from
    the investment - initial cost of
    the investment
    )
    cost of investment

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