Profitability ratios reflect the net result of all the firm's -Select- ...
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Profitability ratios reflect the net result of all the firm's
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policies and operating decisions. The profitability ratios include the: Operating margin, Profit margin, Return on total assets ROA Basic earning power BEP Return on invested capital ROIC and Return on common equity ROE
The operating margin indicates what percentage of sales remain after
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are accounted for. It is a measure of the firm's operating efficiency. Its equation is:
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