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Terms in this set (4)
Net profit margin
Net profit margin is the percentage of revenue left after all expenses have been deducted from sales. The measurement reveals the amount of profit that a business can extract from its total sales.
Return on Equity
Net income / avg owners equity
ROE is considered a measure of how effectively management is using a company's assets to create profits.
Debt to Equity
Total Debt/Total Equity
current assets divided by current liabilities
The current ratio is a liquidity ratio that measures whether a firm has enough resources to meet its short-term obligations.
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