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

Study Sheet of Profitability Ratios

Basic Earning Power (BEP), Earnings Per Share (EPS), Gross Profit, Profit Margin, Return on Assets (ROA), Return on Equity (ROE), ROA DuPont, and ROE DuPont ratios are all explained on this printable Smartacus Study Sheet. Continue reading

Return on Equity Du Pont

Return on equity (ROE) measures profitability related to ownership. Management at Du Pont came up with Return on Equity (Du Pont), an approach that showed that return on equity depends on ROA and the equity multiplier. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading

Return on Equity

Return on equity (ROE) measures profitability related to ownership. This interactive tutorial explains the concept by walking you through the calculations, including where to find the numbers on the financial statements. Continue reading