Conta #1

Gives the company's pricing policy and mark-up margins. An adequate gross margin allows a company to pay its expenses, and then expand.

• Gross profit Margin

• Earnings per share

• Return on equity

• Average

Determines the average interest rate at which a company borrows funds.

• Gross profit Margin

• Earnings per share

• Return on equity

• Average interest rate

Compares the current market price with earnings to calculate if a stock is over or under valued.

Used as a prediction or expectation of future performance.

• Gross profit Margin

• Price/Earning ratio

• Return on equity

• Average interest rate

Indicates the return a company gets on the owners' investment. Companies that make high returns often do not require more debt investments.

• Gross profit Margin

• Price/Earning ratio

• Return on equity

• Average interest rate

Shows the turnover of inventory, and can be compared against sales figures, to show the demand for the company's products.

• Gross profit Margin

• Price/Earning ratio

• Return on equity

• Inventory turnover

Indicates what proportion of equity and debt an enterprise uses to finance its assets. A more stringent test is to use just the long-term debt.

• Debt/equity ratio

• Price/Earning ratio

• Return on equity

• Inventory turnover

Calculates the profit made on a per-share basis. This is quoted by U.S. publicly held companies in their financial statements.

• Debt/equity ratio

• Price/Earning ratio

• Earnings per share

• Inventory turnover