📈Profitability Ratios
Gross Margin Ratio
Gross Profit ÷ Net Sales × 100 = Gross Margin %
What It Means
Your markup percentage before operating costs.
✓Higher % = better pricing power or lower product costs
Related Formulas
Profit Margin
Net Income ÷ Net Sales × 100 = Profit Margin %
Return on Assets (ROA)
Net Income ÷ Average Total Assets × 100 = ROA %
Return on Equity (ROE)
Net Income ÷ Average Stockholders' Equity × 100 = ROE %
Earnings Per Share (EPS)
(Net Income - Preferred Dividends) ÷ Weighted-Average Common Shares = EPS
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