Financial Statement Ratios
Profitability ratios: Indicate the ability to retain earnings or create growth after
covering costs
Gross Margin Percentage: Gross Margin
Sales
Profit Margin: Net Income
Revenues
Return on Assets: Net Income
Aver. Total Assets
Return on Common Equity: Net Income-Preferred dividends
Average Common Equity
Return on Market Equity: Net Income – Preferred dividends
Market value of common equity
Activity ratios: Indicate effectiveness of operations and asset management
