Metrics that are used to determine a business’s ability to generate earnings or profit relative to its sales, operating costs, assets, equity over time.
Gross Profit Margin
A company’s gross profit in terms of revenue generated. Usually taken as a percentage.
Net Profit Margin
A company’s net profit in terms of revenue generated.
Return on Assets (ROA)
The use of the term “return” in the ROA measure customarily refers to net profit or net income. How effective a company is deploying assets to generate sales and profits
Return on Equity (ROE)
ROE is a key ratio for shareholders as it measures a company’s ability to earn a return on its equity investments.