Return on Equity (ROE)

Return on Equity (ROE)

Return on Equity or ROE is a profitability ratio specially meant for the equity shareholders. It is expressed in percentage (net profit/shareholder’s fund *… Read Article
Common Size Financial Statements

Common Size Financial Statements

Common Size Financial Statements express every financial statement item in terms of a percentage of one convenient base parameter. The base item for the… Read Article
Debt to Total Assets

Debt to Total Asset Ratio

The debt to total asset ratio indicates the percentage of total assets of the company financed from debt. It is a broad financial parameter… Read Article
DUPont Analysis

DuPont Analysis

DuPont Analysis is an approach that breaks the Return on Equity (ROE) into a more detailed expression, thereby overcoming the shortcomings or loopholes of… Read Article
Asset Turnover Ratio

Asset Turnover Ratio (ATR)

Asset Turnover Ratio can be defined as the value of sales generated for every rupee invested in assets for a given financial year. It… Read Article
Inventory - Stock Turnover Ratio

Inventory / Stock Turnover Ratio

The inventory/stock turnover ratio is an important financial ratio to evaluate the efficiency and effectiveness of the firm’s inventory management. This ratio indicates how… Read Article
Net Profit Ratio - Margin

Net Profit Margin or Ratio

Net profit margin (NP Margin) is one of the profitability ratios and an important tool for financial analysis. It is the final output any… Read Article
Fixed Charge Coverage Ratio

Fixed Charge Coverage Ratio

The fixed charge coverage ratio is the most meaningful ratio out of all the coverage ratios from a general point of view. It is… Read Article