Equity Analysis

The return on assets focuses on how profitable a company is in relation to its total assets. The ratio is always presented in the form of a percentage.

The asset turnover ratio is used to measure the efficiency of a company. It looks at how efficiently a company uses its assets to produce sales.

The net profit margin is a financial ratio that tells you how much profit a company makes compared to its revenue in the form of a percentage.

The Du Pont analysis was created by the Du Pont corporation and is similar to the Return on Equity (ROE) but more accurate.

ROE is another method to measure the profitability of a company. The ROE divides the net income of a company with the shareholder’s equity.