Return on Assets -- Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets of the company. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement and balance sheet.

Return on Assets DuPont -- Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets of the company. Management at Du Pont came up with Return on Assets (Du Pont), an approach that determines the impact of asset turnover and profit margin on profits. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

Profit Margin -- The profit margin shows the relationship between net income (profit) and sales. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the income statement.

Return on Equity -- Return on equity (ROE) measures profitability related to ownership. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

Return on Equity DuPont -- Return on equity (ROE) measures profitability related to ownership. Management at Du Pont came up with Return on Equity (Du Pont), an approach that showed that return on equity depends on ROA and the equity multiplier. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

Basic Earning Power Ratio -- The basic earning power ratio (or BEP ratio) compares earnings apart from the influence of taxes or financial leverage, to the assets of the company. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

Earnings Per Share -- Earnings per share (EPS) is a way to relate income to ownership on a per share basis, and is used in evaluating share price. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements.

Gross Profit Ratio -- The gross profit ratio indicates how much of each sales dollar is available to meet expenses and profits after merely paying for the goods that were sold. This interactive tutorial explains the gross profit ratio by walking you through the steps, including where Sales and Cost of Goods Sold are on the Income Statement. It lets you use your own numbers -- great for checking homework answers!

Profitability Ratio Study Sheet -- Basic Earning Power (BEP), Earnings Per Share (EPS), Gross Profit, Profit Margin, Return on Assets (ROA), Return on Equity (ROE), ROA DuPont, and ROE DuPont ratios are all explained on this printable Smartacus Study Sheet.

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This work is licensed by Rudy Lopes under a Creative Commons Attribution License (CC-BY 2.0), and is an Open Educational Resource.

Last edited by Rudy Lopes on Apr 5, 2010 10:49 am -0500.