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Topic: Business
Number of pages / Number of words: 3 / 582
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The net profit margin measures the percentage of sales dollars once the firm has paid for their costs and expenses but does include interest, taxes, or preferred stock dividends. Net profit margin = earnings available for common stock / sales which represents the firm's success (Gitman, 2006). Return on total assets or ROA measures overall effectiveness of management in relation to available assets in generating profits...


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Return on total assets or ROA measures overall effectiveness of management in relation to available assets in generating profits. Return on total assets = earnings available for common stock / total assets (Gitman, 2006). One more is the return on common equity or ROE which measures the return that is earned on the firm's common stockholders' investments...


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