return on assets (ROA),
return on fixed assets (ROFA),
return on investment (ROI),
return on equity (ROE).
To find out these ratios, the profit is that portugal email list they want to calculate.
Formula for sales
Enlarge imageprofitability formula
Formula for calculating the profitability of a company
The method determines the percentage of total revenue that is attributable to the company's profit. It consists of the types of products and types of company activities.
Return on sales is considered the rate of profit. It is useful to know this value to understand the dynamics of growth and decline of the company's success indicators. The short-term period of the company's operation is calculated using the operating return on sales.
Auditors calculate ROS using this equation:
Enlarge imagewhat is business profitability
Formula for calculating the profitability of a company
If the value is high, then the company brings more profit to the owner.
Let's look at the example of Svetlana and Irek's tea shop "Tea and Coffee", where the profit before taxes for the year is 2 million rubles, and the revenue is 1.5 million rubles.
(2 million/1.5 million)x100 = 133%
