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  2. Return on equity - Wikipedia

    en.wikipedia.org/wiki/Return_on_equity

    The return on equity (ROE) is a measure of the profitability of a business in relation to its equity; [1] where: . ROE = ⁠ Net Income / Average Shareholders' Equity ⁠ [1] Thus, ROE is equal to a fiscal year's net income (after preferred stock dividends, before common stock dividends), divided by total equity (excluding preferred shares), expressed as a percentage.

  3. Return on capital - Wikipedia

    en.wikipedia.org/wiki/Return_on_capital

    ROIC = ⁠ NOPAT / Average Invested Capital ⁠ There are three main components of this measurement: [2] While ratios such as return on equity and return on assets use net income as the numerator, ROIC uses net operating income after tax (NOPAT), which means that after-tax expenses (income) from financing activities are added back to (deducted from) net income.

  4. Return on capital employed - Wikipedia

    en.wikipedia.org/wiki/Return_on_capital_employed

    Return on capital employed is an accounting ratio used in finance, valuation, and accounting. It is a useful measure for comparing the relative profitability of companies after taking into account the amount of capital used.

  5. Return on Equity vs. Return on Assets: Which One Should I Use?

    www.aol.com/return-equity-vs-return-assets...

    Return on equity (ROE) and return on assets (ROA) determine how efficient a company can be at generating profits. Both formulas that can help investors determine how good a company is at turning a ...

  6. What Is Owner’s Equity? - AOL

    www.aol.com/news/owner-equity-175326187.html

    Owner's equity is the value of a business that the owner can claim, and it consists of the firm's total assets minus its total liabilities. Both the amount of owner's equity and how much it has ...

  7. How to Calculate a Business Owner’s Salary - AOL

    www.aol.com/finance/calculate-business-owner...

    Small business owners in the United States make between $83,000 to $126,000 on average, depending on their industry and location. Keep in mind that many business owners do not take a salary in the ...

  8. DuPont analysis - Wikipedia

    en.wikipedia.org/wiki/DuPont_analysis

    The company's operating income margin or return on sales (ROS) is (EBIT ÷ Revenue). This is the operating income per dollar of sales. [EBIT/Revenue] The company's asset turnover (ATO) is (Revenue ÷ Average Total Assets). The company's equity multiplier is (Average Total Assets ÷ Average Total Equity). This is a measure of financial leverage.

  9. Cost of capital - Wikipedia

    en.wikipedia.org/wiki/Cost_of_capital

    The equity market real capital gain return has been about the same as annual real GDP growth. The capital gains on the Dow Jones Industrial Average have been 1.6% per year over the period 1910–2005. [3] The dividends have increased the total "real" return on average equity to the double, about 3.2%.

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