DuPont Return on Assets:

DuPont Return on Assets:

            The ratio is the relationship of the net income, sales and total assets of the company and measures the return on equity (ROE). Net Profit creates wealth for its owner. We calculate DuPont Return on Assets just because of the sales comparisons with net income and assets.

DuPont Return On Assets =	Net Profit    x   Net Sales
	Net Sales    x  Total Assets

Operating Profit Margin:

Operating Profit Margin:

            The ratio is the relationship of operating income of the company divided by

total revenue of the company. This ratio is used to measure a company's pricing strategy and operating efficiency. It indicates about what proportion of a company's revenue is left over after paying for variable costs of production. A positive and healthy operating profit margin is required for a company to pay off its fixed costs, such as interest on debt. The higher the margin, the better it would be.

Operating Profit Margin =	Operating Profit
	Net Sales

Return on Assets:

Return on Assets:

            Return on Assets ratio is the measurement of the assets utilization to produce the revenue of the business. The ratio could be calculated by dividing the net income (net Profit) of the company with average assets. The ratio depicts that is the company utilizing its assets efficiently or not higher the ratio means that the firm is obtaining the optimum level of production the lower the ratio means that firm is not managing the assets in an efficient manner.

Return On Assets =	Net Profit
	Total Assets

Return on Assets:

Return on Assets:

            Return on Assets ratio is the measurement of the assets utilization to produce the revenue of the business. The ratio could be calculated by dividing the net income (net Profit) of the company with average assets. The ratio depicts that is the company utilizing its assets efficiently or not higher the ratio means that the firm is obtaining the optimum level of production the lower the ratio means that firm is not managing the assets in an efficient manner.

Return On Assets =	Net Profit
	Total Assets

Net Profit Margin:

Net Profit Margin:

            This ratio is a relationship between net profit (profit after interest & tax) and sales. This ratio is used to measure overall effectiveness and efficiency of business. This ratio is used to measure the overall profitability of a firm. It is a very useful ratio for the Share holders because if net profit of a business is sufficient. The net profit margin tells you how much profit a company makes for every Rupee 1 it generates in Sales. This ratio also indicates the firm’s capacity to face adverse economic conditions such as price competition, low demanding. Higher the ratio the better is the profitability.

Net Profit Margin =	Net Profit
	Net Sales

Profitability Ratios

Profitability Ratios:

            The basic objective/purpose of any business is to earn profit. Profit earning is essential for the survival of a business. A company required profit for its existence as well for its expansion and diversification of risk. A company can discharge its liabilities only by earning profit. Profitability ratios are used to measure the business performance and efficiency that how the different business operation are taken place. Stack holder of a company are interested in profitability ratio because it indicate the liquidity position or company’s ability to pay off its obligation and enhance its profit. Generally, profitability ratios are calculated in the relation to sales and profit.