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(Cost of sales – COS) (Cost of Goods

Sold – COGS) COGS (COS)
COGS + Selling and Distribution Expenses = COS
Cost of Goods Sold / Cost of Sales

Average of Total Assets/Fixed Assets/Current Assets/Net Assets/Working Capital

(Profitability Ratios)

(i)
(ii)
(iii)
(iv)

(a)
(b)
(c)
(d)

(a) (ROI)
(b) (ROA)
(c) (ROCE)
(d) (ROE)

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(a) (EPS)
(b) (DPS)
(c) (DP)

(a) (P/E)
(b)
(c) (MV/BV)

(Profitability Ratios based on Sales)

(a) (GP) (Gross Profit Ratio/Gross Profit Margin) :

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(b) (Net Profit Ratio/Net Profit Margin) :

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(c) (Operating Profit Ratio) :

(EBIT)

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(d) (Expenses Ratio) :

*
(Administration Expenses Ratio,
Selling & Distribution Expenses Ratio)

(Profitability Ratios related to Overall Return on investments)

(a) (Return on Investment, ROI) : ROI

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ROI

ROI = Profitability Ratio × Investment Turnover Ratio (ROI)

ROI
(i) (ROA)
(ii) (ROCE),
(iii) (ROE)

Capital Employed Net Worth plus debts

Net Worth

(b) (Returtn on Assets–ROA) :

ROA

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(c) (Return on Capital Employed - ROCE) : ROI

ROCE

ROCE

(Fictitious Assets)
(Average
Capital Employed)
(d) (Return on Equity–ROE) :

ROE

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