Profitability ratios

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7 Terms

1
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Profit Margin

Net income/net sales

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Asset turnover

net sales/average total sales

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Return on assets

net income/average total assets

4
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Return on commonstockholder’s equity

net income/average common stockholder’s equity

5
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Earnings per share

net income/weighted average common shares outstanding

6
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Price Earnings Ratio

market price per share of stock/earnings per share

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Payout Ratio 

cash dividends declared on common stock/net income