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Back to the Profitability Report
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.)		 10%
Gross Profit Margin Gross Profit ÷ Revenue
Gross profit is your revenue minus what it costs to make your product.		 58%
EBITDA Margin EBITDA ÷ Revenue
Many companies use this as a shorthand measure of cash flow. EBITDA is earnings before interest, taxes, depreciation, and amortization.		 16.70%
Return on Equity Net Income ÷ Total Equity
The return your shareholders are getting on their investment.		 21.80%
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.		 11.80%
Interest Coverage Ratio EBITDA ÷ Interest Expense
This ratio shows roughly how easily you can repay your debts.		 9.8
Debt to Equity Ratio Total Liabilities ÷ Total Equity
What you owe compared with what you own.		 1.52
Sales per Employee $297,108.19
Profit per Employee $23,239.39
Payroll as % of Sales 18%
Advertising as % of Sales 1%
Inventory Days (Inventory ÷ Cost of Goods Sold) x 365
The amount of time it takes to convert inventory into sales.		 19.84
Accounts Payable Days (Accounts Payable ÷ Cost of Goods Sold) x 365
The number of days, on average, you take to pay your bills.		 27.9
Accounts Receivable Days (Accounts Receivable ÷ Sales) x 365
The number of days, on average, your customers take to pay you.		 41.04
Current Ratio Total Current Assets÷Total Current Liabilities
The amount of cash (or assets that can be turned into cash) on hand.		 2.26
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.<		 1.48
Sample Size 150
Adjusted Net Profit Before Tax % Change 6.90%
Sales % Change 8.20%
Operating Profit/Sales 10.80%

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