Profitability of dating websites dating ferie i ukraine

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The most common formula for ROA is this: Higher ROA indicates more asset efficiency.

(Even though equity investors don’t generally get paid that net income, they still own it theoretically.) The common ROA formula jumbles things up by comparing returns to equity investors (net income) with assets funded by both debt and equity investors (total assets).Technically, if a company and its comparables all have no debt, this mixup wouldn’t matter, but in the real word, that’s rare.Two variations on this ROA formula fix this numerator-denominator inconsistency by putting interest expense (net of taxes) back into the numerator: ROA variation 1: Net Income (Interest Expense*(1-tax rate)) / Total Assets ROA variation 2: Operating Income*(1-tax rate) / Total Assets These variations try to hit substantially the same target, albeit from different starting points.So far in this series, we’ve discussed income statement profitability measures.In terms of the profitability most relevant to investors, these measures are actually only the top half of the ultimate profitability fraction.

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