Finance and Insurance |
||
|---|---|---|
| Net Profit Margin | Net Pretax Profit ÷ Revenue The bottom line -- the amount you have left after every other expense is taken out. (Sageworks adjusts the number so any extra funds the owners have taken out have been added back in.) |
9.5% |
| Gross Profit Margin | Gross Profit ÷ Revenue Gross profit is your revenue minus what it costs to make your product. |
84% |
| EBITDA Margin | EBITDA ÷ Revenue Many companies use this as a shorthand measure of cash flow. EBITDA is earnings before interest, taxes, depreciation, and amortization. |
12.2% |
| * Return on Equity | Net Income ÷ Total Equity The return your shareholders are getting on their investment. |
14.4% |
| Return on Assets | Net Income ÷ Total Assets Net income generated for each dollar of assets. It's especially relevant for capital-intensive industries, like manufacturing. |
7.4% |
| Interest Coverage Ratio | EBITDA ÷ Interest Expense This ratio shows roughly how easily you can repay your debts. |
5.8 |
| Debt to Equity Ratio | Total Liabilities ÷ Total Equity What you owe compared with what you own. |
2.5 |
| Sales per Employee | $170,877 | |
| Profit per Employee | $18,027 | |
| Payroll as % of Sales | 29% | |
| Advertising as % of Sales | 1.7% | |
| Accounts Payable Days | (Accounts Payable ÷ Cost of Goods Sold) x 365 The number of days, on average, you take to pay your bills. |
17 |
| Accounts Receivable Days | (Accounts Receivable ÷ Sales) x 365 The number of days, on average, your customers take to pay you. |
18 |
| Current Ratio | Total Current Assets÷Total Current Liabilities The amount of cash (or assets that can be turned into cash) on hand. |
2.5 |
| Quick Ratio | (Cash + Accounts Receivable) รท Total Current Liabilities Similar to the current ratio, this is a good measure of a company's short-term cash position. |
1.7 |
| Sample Size | 793 | |
| Adjusted Net Profit Before Tax % Change | 9.60% | |
| Sales % Change | 6.30% | |
| OperatingProfit/Sales | 7.00%% | |
* Your shareholders will compare your return on equity to the returns they could get from other investments. If they can make more money by investing in low-risk Treasury bonds, they may go ahead and do so. "If we have an ROE that's less than our cost of capital, then we're destroying value," says Geoffrey Huggins, senior vice president and corporate controller at Charles Schwab (NASDAQ:SCHW). In general, most companies want a return on equity of at least 12 percent, but financial companies should shoot for 15 percent to 20 percent or even more, Huggins says.
