This efficiency measure show how much revenue is earned for every dollar of assets. Higher values are better.
The company’s depreciation and amortization as a percentage of sales.
A company’s total sales revenue minus expenses (excluding interest, taxes, depreciation and amortization), as a percent of sales.
This variation of Return on Capital takes EBIT as a percent of NetPPandE plus Current Assets. It is used by Joel Greenblatt in his bestselling book The Little Book That Beats the Market.
A company’s total sales revenue minus its cost of goods sold, divided by the total sales revenue, expressed as a percentage. The gross margin represents the percent of total sales revenue that the company retains after incurring the direct costs associated with producing the goods and services sold by a company.
Gross Profit divided by Total Assets is a valuation measure used in the Novy-Marx screener and referred to as gross profitability. A high value is purported to have as much power in value based investing as a low price/book ratio.
A company’s net income as a percent of sales. The higher the percentage the more money the company earns per dollar of sales.
A company’s operating income as a percent of net sales. This measures a company’s pricing strategy and operating efficiency; the higher the margin, the better.
The company’s research and development as a percentage of sales.
A profitability measure calculated as net income as percent of total assets, also called ROA. A high ROA shows an effective allocation of capital.
A profitability measure calculated as net income as a percent of shareholders equity, also called ROE. A high ROE shows an effective use of investor’s money but it does not account for any risks associated with high Financial Leverage.
ROIC, or Return on Invested Capital, quantifies how well a company generates cash flow relative to the capital it has invested in its business. It is defined as Net Operating Profit after Taxes / (Total Equity + Long-term Debt and Capital Lease Obligation + Short-term Debt and Capital Lease Obligation)
The company’s selling, general and administrative expense as a percentage of sales.
The Sustainable Growth Rate attempts to measure how much a firm could grow without borrowing more money. If the firm exceeds this rate of growth, it must borrow funds from another source to facilitate growth. It is calculated by multiplying a company’s Return on Equity by (100 – Payout Ratio Percent).
Unit: Current Percent of Range
The 5-year high and low ROA compared to the current ROA. This metric is graphical.
The 5-year high and low ROE compared to the current ROE. This metric is graphical.
The 5-year high and low ROIC compared to the current ROIC. This metric is graphical.