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Financial Statements

Financial Statements

Return on Assets (ROA): Calculation and Interpretation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Assets, Financial Ratio, Profitability Ratio

Return on Assets ROA Calculation and Interpretation

What's it: Return on assets (ROA) is a profitability ratio to measure how well a company uses its assets to generate profits. This ratio tells us about the returns the company gets on its assets. We calculate it by dividing net profit

Tag: Assets, Financial Ratio, Profitability Ratio

Financial Statements

EBIAT Margin: Formula, Calculation, and Interpretation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: EBIAT, Financial Analysis, Financial Ratio, Profitability Margin, Profitability Ratio

What's it: EBIAT margin is a profitability ratio to measure how efficiently a company generates profit from all its activities before paying interest expense while taking taxes into account. We calculate it by dividing EBIAT by

Tag: EBIAT, Financial Analysis, Financial Ratio, Profitability Margin, Profitability Ratio

Financial Statements

Return on Common Equity (ROCE): Calculation and Interpretation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Common Equity, Financial Analysis, Financial Ratio, Profitability Margin, Profitability Ratio, ROE, Shareholder

What's it: Return on common equity (ROCE) is a profitability ratio for measuring the return to common stockholders on their invested capital. It is an alternative to return on equity (ROE) by isolating returns to preferred

Tag: Common Equity, Financial Analysis, Financial Ratio, Profitability Margin, Profitability Ratio, ROE, Shareholder

Financial Statements

Operating ROA: Formula, Calculation, and Interpretation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Assets, Common Equity, Financial Analysis, Financial Ratio, Profitability Margin, Profitability Ratio, ROA

What's it: Operating ROA is a profitability ratio to measure how well a company is using its assets to generate profits from its core business. We calculate it by dividing operating profit by total assets. Operating ROA provides

Tag: Assets, Common Equity, Financial Analysis, Financial Ratio, Profitability Margin, Profitability Ratio, ROA

Financial Statements

Cost of goods manufactured: Meaning, Components, How to Calculate

Updated on December 18, 2020 · By Ahmad Nasrudin Tag: Expenses, Financial Analysis

What's it: Cost of goods manufactured refers to the collection of production cost plus the change in work-in-process inventory. These production costs (or manufacturing costs) consist of direct material costs, direct labor, and factory overhead

Tag: Expenses, Financial Analysis

Financial Statements

Gearing: Meaning, How to Calculate, Pros and Cons

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Financial Ratio, Gearing

What's: Gearing shows you how much a company depends on debt in its capital structure. It's a term in the UK and the same as leverage for the term in the United States. The company's capital structure is divided into two sources: debt and

Tag: Financial Ratio, Gearing

Accounting and Finance, Financial Statements

Operating Leverage: Why It Matters, How to Calculate it

Updated on April 14, 2022 · By Ahmad Nasrudin Tag: Leverage, Operating Leverage

What's it: Operating leverage shows you the extent to which a company's operating costs are dependent on fixed operating costs. If the company has high leverage, it shows that the company has a significant proportion of fixed costs. Meanwhile,

Tag: Leverage, Operating Leverage

Financial Statements

Acid Test Ratio: Meaning, Formula, Calculation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Acid Test Ratio, Liquidity Ratio

What's it: The acid test ratio is a liquidity ratio to measure whether a company has sufficient cash to cover current liabilities using its liquid assets. First, we add up cash and cash equivalents, short-term investments, and accounts

Tag: Acid Test Ratio, Liquidity Ratio

Financial Statements

Return on Invested Capital (ROIC): Calculation and Interpretation

Updated on April 17, 2022 · By Ahmad Nasrudin Tag: Capital, Capital Structure, Competitive Advantage, Profitability Ratio

What's it: Return on invested capital (ROIC) is a profitability ratio to measure how much profit is generated for every dollar invested in the company. We calculate it by dividing net income by the total invested capital, expressed as

Tag: Capital, Capital Structure, Competitive Advantage, Profitability Ratio

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