Ratios Summary: Analysis of Profitability

Net Income Net Income always mean Net Income Before Minority share of earning and non- recurring items Whether it is mention in the formula or not

Net Profit Margin

= Net Income Before Minority share of earning and non- recurring items *100 Net Sales
= Net Income / Net Sales *100 (Hint)* =___%

Total Assets Turnover

Net Sales Average Total Assets

= _ _ _ Times

Return on Assets = Net Income Before Minority share of earning and non- recurring items OR *100 Average Total Assets Return on Total Assets = ___% Du Pont Return on Assets = Net Profit Margin * Total Assets Turnover Du Pont Return on Assets = Net Income *100 = Net Income * 100 * Net Sales Average Total Assets Net Sales Average Total Assets Bb =___% _ Times = Operating Income Margin Operating Income Return on Operating Assets OR Return on Operating Total Assets Operating Income Net Sales = Sales -- C.G.S -- Operating Expenses = Net Income Before Minority share of earning and non- recurring items *100 Average Operating Assets = ___% = ____% * ___

____%

Du Pont Return on Operating Assets = Net Profit Margin * Total Operating Assets Du Pont Return on Turnover Operating Assets = Net Income *100 = Net Income * 100 Net Sales Average Operating Assets Net Sales Average Operating Asset Bb =___% * _ _ _ _ Times Operating Assets = ____%

= Total Assets Investment and other assets = Net Sales Average Net Fixed Assets (Excluding Construction in

Sales To Fixed Assets Progress)

= _ _ _ Times = 9 *100 Return on Investment Average ( Long Term Debt + Shareholder Equity) =___ % ____ = = Stock 10 Return on Total Equity = ___ % = = * 100 11 Return on Common Equity = ___ % Average (Shareholder Equity- Preferred Stock) Net Income- Total Preferred Dividend Average Shareholder Equity Net Income- Dividend on Redeemable Preferred Net Income

Earnings available to common shareholder

= Net Income- Total Preferred Dividend