Category: Financial Ratios

Q19. Du Pont analysis What is the Du Pont analysis of the return on assets (ROA)? A19. Du Pont analysis shows that the return on

Q18. Earnings per share (EPS) How is the earnings per share (EPS) calculated? A18. Earnings per share (EPS) = (A) / (B) Where, (A) =

Q17. Return on equity (ROE) How is the return on equity (ROE) calculated? A17. (1) Return on equity (ROE) = Net income / Average stockholders’

Q16. Return on assets (ROA) How is the return on assets (ROA) calculated? A16. (1) Return on assets (ROA) = Net income / Average total

Q15. Gross profit ratio How is the gross profit ratio calculated? A15. Gross profit ratio = Gross profit / Sales = (Sales – Cost of

Q14. Profit margin ratio How is the profit margin ratio calculated? A14. Profit margin ratio = Net income / Sales [Entity 14-a] Net income =