Posts Tagged ‘finance’

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.

EBIT margin stands for Earning Before Interest and Tax margin. This margin helps stakeholders understand the cost of running the firms as well as profitability.

The gross profit margin compares the difference between the revenue and cost of goods sold, against revenue. It is represented in the form of a percentage and is used to evaluate the company’s financial health.