Ratio Analysis

Ratios used in financial analysis compare companies to or within an industry. We have listed groups of commonly used ratios with links to examples, explanations, and formulas. Continue reading

Total Asset Turnover Ratio

The total assets turnover ratio measures the use of all assets in terms of sales, by comparing sales with net total assets. This interactive tutorial walks you through the calculations as well as where on the financial statements to find the numbers. Continue reading

Fixed Assets Turnover Ratio

The fixed assets turnover ratio measures how fixed assets are used to generate sales, by comparing sales to net fixed assets. This interactive tutorial walks you through the calculations as well as where to find the numbers on your financial statements. Continue reading

Return on Assets Du Pont

Return on assets (ROA) is a percentage of the after-tax income as compared to the total assets of the company. Management at Du Pont came up with Return on Assets (Du Pont), an approach that determines the impact of asset turnover and profit margin on profits. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading