Earning Per Share EPS
Earning Per Share is a market value measure and is considered one of the important financial ratio. It is denoted by the symbol EPS. It is calculated by dividing the net profit after tax which is available to the ordinary…
Category Profitability Ratio
Profitability Ratio is a very good metrics to calculate the entity’s strnegth in generating profit while incurring expenses and other costs to generate the revenue. There are so many types of profitability ratios which are as follows.
Dividend Payout Ratio
In a profit earning company, every year profit is either distributed to shareholders or kept in the company for future growth which is called retained earnings. The percentage of the profit which is distributed to shareholders is called dividend payout…
Dividend yield
Dividend yield is the valuable profitability ratio. It is most relevant to investors. Because they want to know how their investment in the company is going. It is also called dividend price ratio. Dividend yield formula It is calculated by dividing…
DuPont Analysis
DuPont analysis is the extended version of return on equity ratio. Actually, it takes into account three factors which are:1. Total asset turnover2. Net profit margin 3. Financial leverage This DuPont ratio came into existence when DuPont Corporation started it in…
Price Earning (P/E) Ratio
Price earning is the ratio of current market price of the share divided by the earning per share. Or, we can say that it is obtained by dividing the market capitalization by the total net earnings of the company. Formula…
Retention Ratio
In a profit making company, every year profit is either distributed among the shareholders or it is kept inside the company for reinvestment. The portion of the profit amount which is kept inside the company is called the retained earnings.…
Return on Assets Ratio
Return on assets ratio is best tool to examine the management performance as how efficiently it is using its assets to generate revenue. It is calculated by dividing the annual net earnings after tax by the total assets. Usually, we…
Operating Margin Ratio
Operating margin ratio is the profitability ratio. It is calculated by taking the figures of profit before interest and taxes and net revenue. Formula It is calculated by dividing the profit before interest and tax by the net revenue figure.…
Price to Cash Flow Ratio
Price to cash flow ratio is a very important valuation ratio. Often investor’s use this to evaluate various companies so that they could make investment. Formula It is calculated by dividing the current market price of the share by the…
Gross margin ratio
Gross margin ratio is a profitability ratio and is also called gross profit ratio. It is calculated by dividing the gross profit by the revenue figure. Formula Gross margin ratio = Gross Profit / Revenue Gross profit can be found…
