Profitability Ratios
- Justin Holm
- Jul 3, 2020
- 1 min read
Updated: Aug 12, 2020
Return on Assets: How well is the company using its assets to generate revenue (Net Income / Total Assets) (link)
Operating Margin: Profit generated from every dollar of sales. (link) Gross Profit / Total Revenue
Return on assets ratio = Net income / Total assets
Return on equity ratio = Net income / Shareholder’s equity
Insights:
Chubb vs AIG
Canadian vs US
Links:
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