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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.)		 6%
Gross Profit Margin Gross Profit ÷ Revenue
Gross profit is your revenue minus what it costs to make your product.		 62%
EBITDA Margin EBITDA ÷ Revenue
Many companies use this as a shorthand measure of cash flow. EBITDA is earnings before interest, taxes, depreciation, and amortization.		 17.70%
Return on Equity Net Income ÷ Total Equity
The return your shareholders are getting on their investment.		 10.70%
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.		 5.90%
Interest Coverage Ratio EBITDA ÷ Interest Expense
This ratio shows roughly how easily you can repay your debts.		 7.44
Debt to Equity Ratio Total Liabilities ÷ Total Equity
What you owe compared with what you own.		 1.27
Sales per Employee $205,770.73
Profit per Employee $9,418.84
Payroll as % of Sales 20%
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.		 17.51
Accounts Payable Days (Accounts Payable ÷ Cost of Goods Sold) x 365
The number of days, on average, you take to pay your bills.		 26.68
Accounts Receivable Days (Accounts Receivable ÷ Sales) x 365
The number of days, on average, your customers take to pay you.		 39.4
Current Ratio Total Current Assets÷Total Current Liabilities
The amount of cash (or assets that can be turned into cash) on hand.		 3.6
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.		 2.13
Sample Size 129
Adjusted Net Profit Before Tax % Change 14.80%
Sales % Change 8.70%
Operating Profit/Sales 9.90%

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