Profitability ratios:-
Net profit margin= net profit / sales revenue *100
Return on assets= net income / T assets
DuPont Return on Assets: (Net profit / sales)* (sales / Total assets)
Operating income margin= EBIT / Total income *100
Return on operating assets= net income / operating assets
Working of Operating Assets=
| Cash &balance with treasury banks |
| +Balance with other banks |
| +Lending to financial institutions |
| +Advances (short term) |
| +Fixed operating assets |
| Operating assets |
Return on total equity= net income/T shareholder's equity
Gross profit margin= gross profit/sales*100
Regards,
On Sun, Nov 20, 2011 at 10:27 AM, mc090401010 Shah Nawaz Khan <mc090401010@vu.edu.pk> wrote:
Please if any one can share the profitability ratios formula specially, DoPont Rerurn on assets and
how to calculate the Operating Assets Plz guide me.
Regards
Shahnawaz
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