Profitability Ratios Calculator
Want to measure the financial health of your business? Our Profitability Ratios Calculator is the perfect tool for the job. As a business owner or manager, understanding your profitability ratios is essential for making informed decisions that drive success.
Our user-friendly Profitability Ratio Calculator empowers you to effortlessly calculate key profitability ratios, providing valuable insights into your business’s performance. Whether you’re assessing your return on investment (ROI), net profit margin, or gross profit margin, our calculator simplifies the process, allowing you to focus on what matters most—growing your business.
How to Use This Online Profitability Ratio Calculator?
Enter Your Data: Begin by inputting your financial data in column A if you’re analyzing a single company for one reporting period. Click “Calculate” to instantly generate results below, providing insights into your company’s profitability ratios.
Compare Companies or Periods: If you are comparing two companies or analyzing a single company over two reporting periods, utilize both column A (primary) and column B (secondary). Our calculator automatically computes the percentage change for each data point and ratio, clearly indicating increases or decreases for comprehensive comparison.
- Net Income: Input the net income of your business, representing the total profit after all expenses have been deducted from revenue.
- Total Assets: Enter the total assets of your company, including tangible and intangible assets, to assess asset utilization efficiency.
- Shareholder Equity: Input the shareholder equity, reflecting the company’s net worth after liabilities have been deducted from assets.
- Gross Profit: Provide the gross profit figure, indicating the profit after subtracting the cost of goods sold from revenue.
- Sales: Enter the total sales revenue generated by your business during the specified period.
- Operating Profit: Input the operating profit, representing the profit derived from normal business operations after deducting operating expenses.
Profitability Ratio Calculator
| Results | A | B | Change |
|---|---|---|---|
| Return on Assets | |||
| Return on Equity | |||
| Gross Profit Margin | |||
| Operating Profit Margin | |||
| Net Profit Margin | |||
| Earnings per Share | |||
| Price/Earnings Ratio |
- Common Stock (Outstanding): Specify the number of common stock shares outstanding to evaluate the company’s capital structure.
- Market Price (per Share): Enter the market price per share to assess the company’s valuation in the stock market.
Profitability Ratios Formula Used in Our Calculator
1. Net Profit Margin:
Net Profit Margin =
2. Return on Assets (ROA):
ROA =
3. Return on Equity (ROE):
ROE =
4. Gross Profit Margin:
Gross Profit Margin =
5. Operating Profit Margin:
Operating Profit Margin =
6. Earnings per Share (EPS):
EPS =
7. Price-to-Earnings (P/E) Ratio:
P/E Ratio =
