Investing

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.

Return on invested capital is a method of calculation in which you measure the performance of a company in terms of profitability.

EBIT return on asset measures the firm’s earnings before interest and tax with respect to the firm’s total asset. The main focus on this ratio is the income and the total asset.