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Profitability Ratios

Writer's picture: Justin HolmJustin Holm

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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