Ratios of Profitability Measures Calculation or Formula

Profitability Measures:

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• Gross Income to sales = Gross Income/sales
• Gross income to net worth = Gross income/net worth
• Gross Income to total assets = Gross Income/total assets
• Gross income to total debt = Gross income/total debt
• Net income to sales = Net income/sales
• Net income to net worth (ROI)= Net income/net worth
• Net income to total assets (ROA) = Net income/total assets
• Net income to total debt = Net income/total deb
• Effective Tax Rate = (Income tax / Pre tax income)