Profitability Ratios

Question 1

Roa

Answer 1

Rev\ av Asst

Or

Profit marg X asst turn

Question 2

Return on Capital

Answer 2

Ebit/tot Capit

Question 3

RoE

Answer 3

Ni/av Eq

Or

Roa x fin lev

Question 4

Return on Common Eq

Answer 4

(Ni - pref div)/av common eq

Question 5

Roe Dupont

Answer 5

Roe = tax burden x int burden x oper prof x efficency x leverage

Roe = ni/ebt x ebt/ebit x ebit/rev x rev/asst x asst/eq