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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.)		 4%
Gross Profit Margin Gross Profit ÷ Revenue
Gross profit is your revenue minus what it costs to make your product.		 55%
EBITDA Margin EBITDA ÷ Revenue
Many companies use this as a shorthand measure of cash flow. EBITDA is earnings before interest, taxes, depreciation, and amortization.		 9.60%
Return on Equity Net Income ÷ Total Equity
The return your shareholders are getting on their investment.		 12.30%
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.		 6.10%
Interest Coverage Ratio EBITDA ÷ Interest Expense
This ratio shows roughly how easily you can repay your debts.		 7.6
Debt to Equity Ratio Total Liabilities ÷ Total Equity
What you owe compared with what you own.		 2.76
Sales per Employee $264,334.16
Profit per Employee $13,151.32
Payroll as % of Sales 19%
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.		 5.65
Accounts Payable Days (Accounts Payable ÷ Cost of Goods Sold) x 365
The number of days, on average, you take to pay your bills.		 20.05
Accounts Receivable Days (Accounts Receivable ÷ Sales) x 365
The number of days, on average, your customers take to pay you.		 29.61
Current Ratio Total Current Assets÷Total Current Liabilities
The amount of cash (or assets that can be turned into cash) on hand.		 1.93
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.		 1.4
Sample Size 730
Adjusted Net Profit Before Tax % Change -3.60%
Sales % Change 6.20%
Operating Profit/Sales 4.80%

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