Help - Profitability Ratios

RatioDefinition/Calculation
Gross MarginThe margin available to cover expenses other than the cost of goods sold. (Gross Profit / Total Revenue)
Operating Margin The margin available to cover non-operating expenses. (Operating Income / Total Revenue)
Pre-Tax Margin The amount the company is able to convert from revenue to profit. (Pre-Tax Earnings Before Tax / Total Revenue)
Profit MarginThe amount the company is able to convert from revenue to profit. (After-Tax Net Income / Total Revenue)
Pre-Tax ROE The rate of return on the investment by the stockholders. (Pre-Tax Earnings Before Tax / Total Equity)
After Tax ROE The rate of return on the investment by the stockholders. (After-Tax Net Income / Total Equity)
Pre-Tax ROA The ability of the company to utilitze its assets to create profit. (Pre-Tax Earnings Before Tax / Average Total Assets)
After Tax ROA The ability of the company to utilize its assets to create profit. (After-Tax Net Income / Average Total Assets)
Pre-Tax ROIC The rate of return on all financial resources (debt or equity) available to the company. (Pre-Tax Earnings Before Tax / Total Assets - (Current Liabilities - Short Term Debt / Current Portion of Long Term Debt)))
After Tax ROIC The rate of return on all financial resources (debt or equity) available to the company. (After-Tax Net Income / (Total Assets - (Current Liabilities - Short Term Debt / Current Portion of Long Term Debt)))

Exporting Financial Ratios to Excel
To export the Financial Ratio data you are currently viewing to Excel, select the 'Save as Excel' link.

View Related Help Topics
     • Balance Sheet
     • Income Statement
     • Cash Flow
     • Financial Ratios
      - Current Valuation Ratios
      - Liquidity Ratios
      - Activity Ratios
      - Leverage Ratios
    • Financial Comparison

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