Click Ratio Name For More Information

• Current Ratio
• EBIT / Interest
• Sales / Receivables
• Sales / Net Fixed Assets
• Cost of Sales / Inventory
• Quick Ratio
• Debt / Worth
• Sales / Working Capital
• Cost of Sales / Payables
• Depreciation / Net Sales
• Officers & Owners Salaries / Net Sales
• Fixed Assets / Tangible Net Worth
• % Profit Before Taxes / Tangible Net Worth
• % Profit Before Taxes / Total Assets
• Net Profit + Depreciation / Current Portion Long Term Debt

Percent Profit Before Taxes / Total Assets

What it measures

This ratio measures the rate of return on total assets.  It can be used as an indicator for management efficiency.  The ratio is expressed as a percentage.

How is the ratio calculated

Divide operating profit (net income before taxes) by total assets and then multiply be 100.  For example, if your net income (before taxes) is 30,000 and the total assets is 680,000 then the ratio is calculated

        30,000
        --------   * 100 = 4.41
        680,000

Target

The target for the percent profit before taxes / total assets is 4.50