Basic vs Diluted EPS – All You Need To Know
Both Basic EPS and Diluted EPS are important profitability measures that help in the analysis of the companies. To learn about the difference between… Read Article
Profitability Ratio
Advantages and Disadvantages of Profitability Ratios
Advantages and Disadvantages of Profitability RatiosThe advantages and disadvantages of profitability ratios are important things to keep in mind before utilizing these ratios in… Read Article
What is a Good EPS?
What Does EPS mean?To arrive at earnings per share or EPS, we must divide total profit by the total number of outstanding shares. Which… Read Article
Why is EPS Important to Investors?
Understanding EPSEarnings per Share or EPS is the portion of a company’s profit that is allocated to each individual outstanding share.Many times the question… Read Article
Return on Invested Capital (ROIC)
DefinitionReturn on Invested Capital or ROIC attempts to measure the returns earned on the capital invested by a company. It is a profitability ratio,… Read Article
Operating Ratio
The operating ratio is a type of profitability ratio. It is the comparison of an operating expense to the revenue of a business. Operating… Read Article
Return on Net Worth
Return on Net Worth DefinitionReturn on Net Worth is a profitability ratio developed from the perspective of the investor and not the company. By… Read Article
Return on Sales
Return on sales measures the operating profit margin of the company and how the management is working on using the resources. It evaluates whether… Read Article
Return on Investment
Return on investment, one of the profitability ratios, is a measure to evaluate the gain on investment. It is a ratio of the ‘profit… Read Article
Operating Margin Ratio
What is the Operating Margin Ratio?The operating margin ratio is the ratio of operating income to the revenue of the business. It highlights the… Read Article
Capital Employed
Capital Employed is the total amount of investment made for running the business. It should not be confused with the term “capital.” Capital represents… Read Article