MAFundamentals defines the foundation of Management Accounting from cost concept, classification and analysis. It provides general discussion on COST, VOLUME, PROFIT, VARIANCE and other information necessary for performance measurement, decision making and pricing.
Showing posts with label Profitability Ratios. Show all posts
Showing posts with label Profitability Ratios. Show all posts

Profitability Ratios

Firms or companies' Profitability Ratios measure earnings in relation to some base such as capital, sales or assets.

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There are nine (9) types of ratios covered.
  1. Profit Margin on Sales (or Net Profit Percentage)
    FORMULA SIGNIFICANCE
    Net Income

    Net Sales
    Measures the percentage of net income to sales