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Efficiency Metrics

Return on Equity (ROE)

What is ROE or Return on Equity? Return on Equity (“ROE”) is a metric which measures a firm’s financial performance...

Operating Margin

What is the Operating Margin? The operating margin, also known as operating profit, operating profit margin, or return on sales,...

Return on Assets (ROA)

What is Return on Assets (ROA)? Return on Assets (“ROA”) is a financial ratio that shows the percentage of profit...

Net Profit Margin

What is the Net Profit Margin? The net profit margin, also known as profit margin, is a ratio that takes...

Gross Profit Margin

What is the Gross Profit Margin? Gross profit margin measures the amount of revenue retention after accounting for costs linked...

Retained Earnings

The goal of a business is to generate profit, generate as much profit as it can, and to grow that...

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