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Fin433 1
Fin433 1
2. Profit Margin:
measures how much of profit earned from company’s operation.
𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆
Profit Margin ratio = 𝑺𝒂𝒍𝒆𝒔
3. NWC turnover:
measures how much revenue earn from NWC investment.
𝑺𝒂𝒍𝒆𝒔
NWC turnover ratio = 𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝒂𝒔𝒔𝒆𝒕𝒔−𝑪𝒖𝒓𝒓𝒆𝒏𝒕 𝑳𝒊𝒂𝒃𝒊𝒍𝒊𝒕𝒊𝒆𝒔
4. Return on Equity:
measures company’s share performance in the share market.
𝑵𝒆𝒕 𝑰𝒏𝒄𝒐𝒎𝒆
Return on Equity ratio = 𝑻𝒐𝒕𝒂𝒍 𝑪𝒐𝒎𝒎𝒐𝒏 𝑺𝒂𝒉𝒓𝒆𝒉𝒐𝒍𝒅𝒆𝒓′ 𝒔 𝒆𝒒𝒖𝒊𝒕𝒚